FINRA Fines Aegis Stockbroker For Unauthorized Trading

Cory D. Bataan of Melville New York is a stockbroker currently registered with Aegis Capital Corp. who has been fined five thousand dollars and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he executed trades in customer investment accounts without authorization. Letter of Acceptance Waiver and Consent No. 2017052696501 (Jan. 31 2018).

According to the AWC, from January of 2016 to December of 2016, discretion had been exercised by Bataan in the accounts of four customers, wherein Bataan placed hundreds of transactions in their investment accounts without ever having spoken to them on days in which their transactions were placed.

The AWC stated that written authorization had not been provided by customers to Bataan to warrant his activities in the customers’ accounts. In addition, no written authorization had been provided by Aegis for the customers’ accounts to be approved for purposes of discretionary trading. Consequently, Bataan’s conduct was found by FINRA to be violative of FINRA Rules 2010 and NASD Conduct Rule 2510(b).

FINRA Public Disclosure reveals that Bataan has been identified in four customer initiated investment related disputes containing allegations of Bataan’s improper conduct while employed with Aegis Capital Corp. and Joseph Stevens & Company, Inc. Particularly, on September 12, 2001, a customer initiated investment related written complaint involving Bataan’s conduct was settled for $13,944.45 in damages supported by accusations that Bataan executed unauthorized over-the-counter equities transactions in the customer’s account.

Subsequently, a customer initiated investment related arbitration claim pertaining to Bataan’s conduct was settled for $23,000.00 in damages based upon allegations of suitability, misrepresentation, violations of margin trading, and unauthorized transactions relating to the customer’s over-the-counter equities portfolio. National Association of Securities Dealers (NASD) Arbitration No. 02-00299 (Dec. 18, 2003).

Thereafter, a customer initiated investment related arbitration claim involving Bataan’s conduct was settled for $45,000.00 in damages supported by accusations of breach of fiduciary duty, unauthorized trading, suitability and churning of the customer’s stock portfolio. FINRA Arbitration No. 15-00267 (Sept. 23, 2016). Moreover, a customer initiated investment related arbitration claim in regards to Bataan’s activities was resolved for $25,000.00 in damages supported by allegations that the customer was charged commissions and fees that were excessive and had been recommended over-the-counter equities that were not suitable for the customer.

On August 16, 2012, Bataan was fired from his previous employer, Empire Asset Management, founded on accusations that he violated the procedures and policies of the firm and committed violations of FINRA Rule 2111.

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