Securities Arbitration Lawyers BlogFINRA Sanctions Aegis Brokers Daniel O’Neil And Douglas Szempruch
Daniel O’Neil and Douglas Szempruch, two brokers working for Aegis Capital Corp. (CRD#:15007) in Melville, NY, have faced disciplinary action FINRA after both were separately involved in improper activities.
Daniel O’Neil (Daniel James O’Neil CRD#:1358245) is a former registered broker with Aegis, who discharged him on 7/29/2021 for failing to notify the firm about a “pending enforcement investigation” by FINRA. The investigation focused on “conduct inconsistent with firm standards.”
O’Neill’s previous employers include:
- Ladenburg Thalmann & Co. Inc. (CRD#:505), also of Melville
- Maxim Group LLC (CRD#:120708) of Woodbury, NY
- Wachovia Securities, LLC (CRD#:19616) of Manhasset, NY
He has been in the industry since 1986.
The enforcement action was based on a customer dispute filed on 2/3/2021 in which it was claimed O’Neill made unsuitable investments, and no damages are yet recorded. In the complaint, FINRA describes O’Neill’s actions as:
- Excessive trading that led to losses while he profited from substantial commissions
- Effecting trades in the customer’s account without proper authorization or consent from the customer to make the trades
This action is currently pending as of July 29, 2021.
O’Neill’s record also includes six tax and civil judgments that total $140,007.81 in liens dating back to 2012. No additional information is available on these disclosures.
Douglas Szempruch (Douglas Edward Szempruch CRD#: 4159318) is a registered broker with Aegis that FINRA recently suspended after he was also found to be engaged in excessive trading in six accounts without customer consent or authorization. During the process, Szempruch failed to take into account the risk tolerance of each client. The investigation began after an anonymous tip through FINRA’s Office of the Whistleblower.
Szempruch’s previous employers include:
- Global Arena Capital Corp (CRD#:16871) of New York, NY, and expelled by FINRA on 1/4/2016
- Prestige Financial Center, Inc. (CRD#:30407), also of New York, NY, and expelled by FINRA on 5/23/2011
- W. Bach & Company (CRD#:43522) of Port Washington, NY
Another one of his previous employers, Harrison Securities, Inc. (CRD#:14103), also of Port Washington, was expelled by FINRA on 12/16/2004. He has been in the industry since 2000.
Szempruch also made misleading statements about a company he was pitching to 34 clients in an email as an investment. In it, Szempruch told prospects that he had “first-hand information” about the company because he had:
- Visited their production facility
- Met with the company’s management
- Was in direct communication with management including their weekly calls
Actually, Szempruch was invited to visit their production facility but never did. His colleagues who did visit the facility briefed him upon their return. Although he followed the company closely, he was not in touch with company management. While Szempruch’s colleagues at Aegis participated in status conferences, the company ended their participation after executing an agreement with Aegis in March of 2017.
After the investigation, FINRA imposed the following sanctions, to which Szempruch agreed:
- A suspension in all capacities for the twelve-month period of 7/19/2021 through 7/18/2022
- Restitution to clients in the amount of $99,720.87, plus interest, from 9/27/2016 until paid in full
After submitting a statement detailing his current financial situation and ability to pay, FINRA did not impose any administrative fines over and above restitution plus interest.
Two customer disputes were both resolved with Szempruch commenting that they were both client miscommunications.
The most recent, dated 2/28/2018, list allegations of “poor performance and unsuitable recommendation.” The claim settled for $30,000.
His first customer dispute is dated 5/28/2004, claiming unauthorized trading, requesting damages of $5,994.35. The claim was settled for $250, with broker comments that it was “forgotten.”
Szempruch also has a 2005 criminal charge in his record for bribery and possession of stolen property. He pleaded guilty to a lesser charge of attempting to obstruct government administration, a class B misdemeanor, and was convicted. Afterward, he paid a $250 fine and received a one-year conditional discharge.
Did You Invest With Dan O’Neil or Douglas Edward Szempruch?
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. 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.