Aegis Stockbroker Sanctioned For Unsupervised Communications
Paul Anthony Falcon of Boca Raton Florida a stockbroker currently registered with Aegis Capital Corp. has been fined $5,000.00 and suspended for thirty days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that the stockbroker used secretive and unapproved communication channels to correspond with customers of Aegis Capital Corp. about securities business. Financial Industry Regulatory Authority (FINRA) Arbitration No. 2018059746001 (Feb. 24, 2020).
According to the AWC, Falcon had been issued a personal activity questionnaire by Aegis Capital Corp. The stockbroker disclosed through this questionnaire that he used WhatsApp to engage in his communications with customers for business purposes. The AWC stated that hundreds of messages had been transmitted between Falcon and his customers between November 9, 2017 and June 25, 2019 in regard to securities transactions. FINRA concluded that Falcon violated FINRA Rules 2010 and 4511.
FINRA Public Disclosure reveals that Falcon has been identified in six customer initiated investment related disputes containing allegations of his misconduct while employed with Aegis Capital Corp, First Union Securities Inc. and Citicorp Investment Services. Specifically, a customer initiated investment related complaint involving Falcon’s conduct was settled for $15,000.00 in damages based upon allegations of the customer not being provided sufficient information regarding the maturity of government debt investments sold by Falcon when he was associated with Citicorp Investment Services.
On April 25, 2016, another customer filed an investment related complaint involving Falcon’s conduct in which the customer requested $190,672.12 in damages based upon allegations that the customer was provided with bad advice between 2013 and 2016 and that the customer’s overall account poorly performed while the stockbroker was associated with Aegis Capital Corp.
Falcon is also the subject of a customer initiated investment related arbitration which was settled for $210,000.00 in damages based upon allegations of poor performance between 2013 and 2016. FINRA Arbitration No. 17-00764.
According to the claim, excessive and unauthorized trades were effected in the customer’s account. Falcon’s recommendations regarding stocks and corporate debt investments allegedly failed to be suitable for the customer.
On December 19, 2018, another customer filed an investment related arbitration claim involving Falcon’s conduct in which the customer requested $1,000,000.00 in damages based upon allegations of the breach of both contractual and fiduciary duties as well as negligence with respect to Falcon’s activities at Aegis Capital Corp. FINRA Arbitration No. 18-04305.
Falcon has been registered with Aegis Capital Group since July 19, 2013.