James Schwartz Allegedly Churned & Excessively Traded the Accounts of Aegis Customers
Former broker James Bradley Schwartz, from August 2014 through May 2016, allegedly churned and excessively traded the accounts of customers of his member firm, Aegis, according to a Complaint from FINRA’s Department of Enforcement under review by investor rights attorney Alan Rosca.
Schwartz‘s trading was unsuitable and caused combined losses of more than $660,000 in four customers’ accounts,
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to James Schwartz’s alleged churning and excessive trading of the accounts of customers of his member firm, Aegis. Investors who believe they may have lost money in activity related to former broker James Schwartz’s alleged churning and excessive trading of the accounts of customers of his member firm, Aegis are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
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James Schwartz Barred by FINRA
Schwartz’s unsuitable trading, in addition to allegedly purportedly causing combined losses of more than $660,000 in the aforementioned customers’ accounts, also concurrently allegedly generated gross sales credits and commissions of approximately $277,705, of which he received more than $194,000, according to the aforementioned Complaint.
Said Complaint further alleges that Schwartz, from August 2014 through May 2016, purportedly conducted fraudulent and deceptive trading by exercising de facto control over the customers’ accounts and engaging in unauthorized trading.
During the said period, Schwartz allegedly executed approximately 535 trades in said customer accounts — purportedly resulting in annualized turnover rates ranging from 19.9 to 54.7, and annualized cost-to-equity ratios (or break even points) ranging from 87% to 120%, the Complaint states.
Schwartz also allegedly conducted his fraudulent and deceptive trading by exercising de facto control over customer accounts and engaging in unauthorized trading, the Complaint notes.
Indeed, from August 2014 through May 2016, Schwartz allegedly executed 261 trades with a total principal value of approximately $10 million without his customers’ authorization, including unauthorized trades Schwartz executed in his customer DP’s account after DP had died, the Complaint reports.
He also allegedly executed trades with a total principal value of approximately $10 million without his customers’ authorization, including unauthorized trades he allegedly executed in a customer’s account after the customer had died, the Complaint notes.
By nature of the aforementioned alleged behavior, he allegedly violated FINRA Rules, and thus has been barred by FINRA in all capacities.
Former broker James Schwartz reportedly entered the securities industry in 1998, and he was allegedly associated with nine different NASD and FINRA-regulated broker-dealers before joining Aegis in June 2013, the Complaint notes.
From June 2013 through June 2016, Schwartz reportedly was associated with Aegis as a General Securities Representative in the Firm’s Melville, New York branch, and, after leaving Aegis, Schwartz was reportedly registered with two other FINRA-regulated broker-dealers as a GSR from June 2016 to February 2017.
Although he is no longer registered or associated with a FINRA member firm, he remains subject to FINRA’s jurisdiction for purposes of this proceeding, pursuant to FINRA’s By-Laws, the Complaint notes.
James Bradley Schwartz has also been registered at the following firms according to his FINRA Brokercheck page:
- Joseph Gunnar & Co., LLC, New York, NY— December 9, 2016 to February 28, 2017
- First Standard Financial Company LLC, Garden City, NY— June 6, 2016 to December 9, 2016
- John Thomas Financial, New York, NY— October 9, 2012 to June 6, 2013 (FINRA expelled the firm on October 31, 2013)
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating James Schwartz’s alleged churning and excessive trading of the accounts of customers of his member firm, Aegis. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of broker James Schwartz’s alleged churning and excessive trading of the accounts of customers of his member firm, Aegis may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
