There are options for clients of Aegis Capital Corp. broker Gilbert Kuta (CRD# 1084075) who suffered investment losses.
He has been registered with Aegis Capital Corp. in Timonium, Maryland, since 2020. Previously, he was registered with Capitol Securities Management, Inc. in Timonium, Maryland, from 2009 to 2020, with RBC Capital Markets Corporation in Hunt Valley, Maryland, from March to September 2009, and with Ferris, Baker Watts, LLC in Hunt Valley, Maryland from 1994 to 2009. Prior to then, he was registered with Smith Barney Shearson Inc. in New York, New York, from 1993 to 1994, when he was terminated regarding, “n/a Smith Barney Shearson terminated my employment on December 29, 1993, after it became aware that on December 28, 1993, I personally reimbursed a client in the amount of $1,500 for losses in the client’s account.”
In November 1993, the NYSE Division of Enforcement sanctioned him to a “stipulation and consent penalty filed by NYSE division of enforcement and pending. without admitting or denying guilt, Kuta consents to: a. findings that he: (i) engaged in conduct inconsistent with just and equitable principles of trade by effecting unauthorized trades in the accounts of customers of his member organization employer; and (ii) violated rule 352 (c) by sharing in a loss in the account of a customer of his member organization employer. b. the imposition by the exchange of the penalty of a censure and a one month suspension from membership, allied membership, approved person status, and from employment or association in any capacity with any member or member organization.”
In March 1994, the Virginia – State Corporation Commission sanctioned him regarding: “based on Mr. Kuta’s disciplinary history he agreed to be bound by, and Ferris Baker Watts incorporated agreed to implement, the provisions of a special supervision order which requires the constant monitoring of Mr. Kuta’s activities for a period of no less than 12 months.”
In March 1994, the State of Maryland sanctioned him related to: “the Maryland Division of Securities advised me that it was not prepared approve my application for agent registration unless Ferris, Baker Watts and I agreed to special supervisory procedures.”
In July 2021, FINRA sanctioned him to pay a $5,000 civil and administrative penalty and fine and suspended him for 10 days related to the findings. According to FINRA, “Kuta consented to the sanctions and to the entry of findings that he exercised discretion without written authorization in customers’ accounts. The findings stated that although the customers knew that Kuta was exercising discretion in their accounts, he did not have prior written authorization to do so from any of the customers. Additionally, Kuta’s member firm had not approved any of these accounts for discretionary trading.”
Gilbert Kuta Customer Complaints
He has been the subject of 10 customer complaints between 1992 and 2024, four of which were denied, and one was closed without action, according to his CRD report. The most recent complaints are regarding:
March 2024. “Time Frame: 2021- 2023. POA alleges excessive, unsuitable trading and poor performance.” The case is currently pending.
January 2024. “Client filed for arbitration on 01/14/2014. the firm received the statement of claim on 01/31/2014. client alleged misconduct from the representative such as negligance (sp), excessive commissions, churning, and suitabiltiy (sp). The client requests relief in the amount of $91,567 (loss of principal: $36,567; proposed rate of return: $25,000; excessive commissions: $30,000).” The customer sought $91,567 in damages, and the case was settled for $22,500.
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 Gilbert Kuta’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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