James Schwartz (CRD# 3043085) is a former registered broker whose last employer was Joseph Gunnar & Co. LLC (CRD#:24795) of New York, NY. Previous employers include First Standard Financial Company LLC (CRD#:168340) of Garden City, NY, and Aegis Capital Corp. (CRD#:15007) of Melville, NY. He has been in the industry since 1998.
During his tenure with Aegis (2013 through 2016), Schwartz was the subject of six customer disputes, all of which were settled by the firm. The allegations against Schwartz were similar: unauthorized and excessive trading, unsuitable recommendations, breach of fiduciary duty, negligence, misrepresentation, and others. The damages requested for these six disputes totaled $6,861,954.47, and the damages awarded totaled $2,730,286.36.
A FINRA complaint that addressed these six disputes found that Schwartz had conducted unsuitable trades, with combined losses of approximately $660,000. He executed trades of approximately $10 million, without authorization of the six customers, including trades made after one customer died. This trading generated sales and commissions of approximately $277,705.00, and he personally received commissions totaling $194,000.00.
After FINRA’s investigation, Schwartz consented to the sanction, and of an indefinite bar from association with any FINRA broker-dealer, effective 4/16/2019.
Additionally, Schwartz has one tax lien from 2016 in the amount of $15,667.00, and a discharged bankruptcy on 6/3/2017.
Every dollar spent on commissions is a dollar lost in the portfolio. Excessive fees, costs, or commissions can deteriorate a portfolio. An investor cannot make a profit in the long run if the fees exceed the returns in the account.
Did You Invest Money With James Schwartz?
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