Aegis Capital Sued For Breach Of Fiduciary Duty

Elliot Hough Sherer of Melville New York a stockbroker currently employed by Aegis Capital Corp. has been identified in a customer initiated investment related arbitration claim where the customer sought $95,596.00 in damages founded on accusations of (1) breach of a fiduciary owed to the customer by Sherer (2) breach of a contract between the customer and Aegis Capital Corp and (3) unsuitable securities transactions by Sherer which caused the customer to experience losses. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00036 (Mar. 9, 2020).

Sherer has been identified in eight additional customer initiated investment related disputes pertaining to allegations of his misconduct while employed with Aegis Capital Corp., Prestige Financial Center and SW Bach Company. FINRA Public Disclosure indicates that unauthorized stock transactions were facilitated in the SW Back Company customer’s account and that the customer’s instructions had been disregarded.

In addition, a customer filed an investment related complaint in reference to Sherer’s conduct where the customer sought $20,936.00 in damages based upon accusations that a fiduciary duty had been breached by Sherer and that trades were placed in the customer’s SW Bach Company account on an excessive and unsuitable basis causing the customer to experience stock losses.

Sherer is also the subject of a customer initiated investment related arbitration claim in which the customer was awarded $420,000.00 in damages based upon Prestige Financial Inc. being found liable on the customer’s causes of action including fraud and churning as it pertained to purchases of Crocs and Nvidia for the customer’s account. According to the claim, contractual and fiduciary obligations had been breached. Trades were effected by the stockbroker on an unauthorized and unsuitable basis. The claim also alleges that the customer’s instructions had been disregarded and that the stockbroker’s actions lacked supervision.

Another customer initiated investment related complaint concerning Sherer’s activities was resolved for $135,000.00 in damages founded on accusations of bad securities recommendations by Sherer that had not been supervised by Prestige Financial Center. The claim alleges that trades were executed without the customer’s permission. Misrepresentations were allegedly made by Sherer concerning over-the-counter equities.

Sherer is also the subject of a customer initiated investment related written complaint which settled for $30,000.00 supported by allegations of the stockbroker having churned the customer’s account and placed transactions without the customer’s permission. Another customer initiated investment related written complaint pertaining to Sherer’s conduct was settled for $8,000.00 in damages on February 8, 2017 supported by allegations that between 2012 and 2016: Sherer gave the customer bad advice and had inappropriately utilized margin to effect securities transactions. The claim also alleges that the customer was overcharged on transactions executed by the stockbroker at Aegis Capital Corp.

FINRA Public Disclosure reveals that Sherer has been associated with four different securities broker dealers which have been expelled by regulators for violation of federal securities laws or are otherwise defunct.