FINRA v. Aegis Capital Corp.

Aegis Capital Corp. allegedly failed to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with Securities Act rules regarding general solicitations of private placements and sold private placements in contravention of Section 5 of the Securities Act. The firm also sent retail communications relating to private placements to prospective investors that failed to meet FINRA's content standards. The communications omitted key risks of the offering, thereby failing to provide a fair and balanced presentation, or making exaggerated and unwarranted claims. The firm also allegedly failed to provide prompt written notice to customers that it had terminated research coverage of an issuer.

Summary generated from official Financial Industry Regulatory Authority press release