Did You Invest In An Aegis Financial IPO?

Did you participate in an initial public offering (IPO) sold by Aegis Capital Corp.? According to its website, Aegis has been bookrunner, placement agent, or co-manager for dozens of public offerings in recent years.

IPOs, Pre-IPO Offerings, And SPACs

Stock IPOs, pre-IPO offerings, and SPACs are often touted by stockbrokers and financial advisers as holding tremendous potential for investors to make money with a company that has a bright future ahead of it. The opportunity to buy into the hyped offering may be described as limited and exclusive, with investors pressured to buy into the next big thing before it’s too late.

However, these offerings have been associated with fraud or misrepresentation by the companies and the brokers selling the offering. And in some cases they cause investors to lose a significant amount of money.

Sometimes after an investor buys into an IPO, they find out that the company omitted material information or lied in its SEC filings, or that their broker didn’t perform adequate due diligence or misrepresented facts.

SPACs (Special Purpose Acquisition Companies) have an IPO without having a company. Investors buy into SPACs based on trust in the actions and judgment of the SPAC’s sponsors. Fraud can occur when the SPAC’s sponsors make misrepresentations about: the company being acquired, the SPAC itself, or when adequate due diligence isn’t performed into the company being acquired.

About Aegis Capital

Aegis Capital is a brokerage and investment adviser based in New York City. They have been a FINRA (Financial Industry Regulatory Authority) member since 1984 and operate 23 branch offices with more than 350 registered representatives.

Aegis has been investigated by regulators several times and has been subject to disciplinary actions. Their publicly-available FINRA BrokerCheck report lists 37 disclosures as of this writing.

Aegis recently settled claims with FINRA, over alleged churning (or excessive trading) of customer accounts, in a Letter of Acceptance, Waiver, and Consent (AWC). Churning is when a broker buys and sells to generate commissions rather than to benefit the client. It is a violation of FINRA’s rules as well as securities laws.

The AWC states that Aegis allegedly did not recognize excessive trading in customer accounts, causing in millions of dollars of losses. The AWC also states that a many registered representatives for Aegis have disclosures on their FINRA report for financial issues.

Did You Lose Money In An Aegis Capital IPO?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct, including IPO fraud, misrepresentation, lack of due diligence, and the sale of unsuitable investments.

If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.