Aegis Capital Corp Suspended For Unauthorized Trading
David Bruce Drucker, of New York, New York, a stockbroker formerly registered with Aegis Capital Corp, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected unauthorized trades in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014040981501 (Mar. 15, 2016).
According to the AWC, while Drucker was registered with Aegis Capital Corp., he effected seventy transactions in the accounts of two customers despite Drucker’s failure to first gain consent from the customers in writing. The AWC also stated that the customers’ accounts were not approved by the firm for discretion to be exercised by Drucker. Consequently, FINRA found Drucker’s conduct violative of FINRA Rules 2010 and NASD Conduct Rule 2510(b).
FINRA Public Disclosure reveals that Drucker has been named in five customer initiated investment related disputes containing allegations of his wrongdoing while associated with RBC Dain Rauscher Inc., RBC Wealth Capital Markets, Oppenheimer & Co. Inc., and Morgan Stanley. Specifically, on May 9, 2012, a customer initiated investment related arbitration claim involving Drucker’s conduct was settled for $55,000.00 in damages based upon allegations that he effected trades in the customer’s account on an excessive basis and made misrepresentations to the customer concerning options and stock products.
Subsequently, on February 28, 2013, a customer initiated investment related arbitration claim regarding Drucker’s activities was resolved for $177,500.00 in damages based upon allegations that he allowed for withdrawals to be made from a customer’s trust account in a manner which violated the trust’s terms. The customer further alleged that Drucker excessively traded options and over-the-counter equity investments in the customer’s account.
On June 22, 2015, another customer initiated investment related arbitration claim involving Drucker’s conduct was settled for $45,000.00 in damages grounded by allegations that Drucker made unsuitable investment recommendations to the customer and effected closed-end fund and options transactions without the customer’s consent. Further, on April 1, 2016, a customer initiated investment related arbitration claim pertaining to Drucker’s activities was settled for $55,000.00 in damages based upon allegations that Drucker effected unauthorized, unsuitable and excessive over-the-counter equities transactions in the customer’s investment account.
Drucker’s registration with Aegis Capital Corp. was terminated on October 30, 2015.
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