Erez Law is currently investigating Aegis Capital Corp. broker Joseph LaScala (CRD# 3070261), who is accused of unauthorized trading. He has been registered with Aegis Capital Corp. in Melville, New York, since 2012.
In February 2022, FINRA sanctioned him to pay a $7,500 civil and administrative penalty and fine, and he was suspended for four months related to allegations that he “engaged in excessive and quantitatively unsuitable trading in his customer’s account.” FINRA found that he exercised discretionary trading, without prior approval from the customer or firm, in the customer’s individual 401(k) account. According to FINRA’s findings, “LaScala decided which stocks to trade and when to trade them, and exercised discretionary authority in connection with the trades, he controlled the volume and frequency of trading in, and therefore exercised de facto control over, the customer’s account.” The broker’s “short-term trading in the customer’s account resulted in $90,720 in trading costs and $116,194 in losses.”
Joseph LaScala Customer Complaints
He has been the subject of six customer complaints between 2002 and 2023, one of which was denied, according to his CRD report. The most recent complaint is regarding:
March 2023. “Client alleges unauthorized trading.” The case is currently pending.
Past complaints were related to allegations of excessive, unsuitable trading, mishandling of accounts, and failure to supervise.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Aegis Capital Corp. may be liable for investment or other losses suffered by Joseph LaScala’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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