Aegis Capital Michael Venturino Complaints Investigation

Aegis Capital Michael Venturino Complaints Investigation

If you have had dealings with Long Island, NY broker Michael Venturino (Venturino, CRD# 5872439) from Aegis Capital, it may not be a bad idea to review your investments now. It might also be a good idea to reach out to Haselkorn & Thibaut, P.A., for a no-cost, confidential discussion about them as there are allegations against Venturino of excessive trading and churning in client accounts, as well as portfolio mismanagement.

Haselkorn & Thibaut’s attorney’s are representing investors in securities arbitration proceedings involving Venturino. Our lawyers believe there could be other investors similarly impacted and has requested them to reach out to him for a conversation on the subject, even as the Haselkorn & Thibaut continues its investigations.

In about a decade as a licenced stockbroker, Venturino has worked for several firms. The most recent ones are:

  • 2014 till July 2017 – with Aegis Capital Corp. (Aegis) in the Melville, NY office
  • July 2017 till April 2018 – with Trident Partners Ltd. (Trident) of Woodbury, NY
  • April 2018 till date – with Spartan Capital Securities LLC (Spartan) in Garden City, NY

He has managed to clock twelve customer complaints during this period, based on information available in the public domain. Of these, four cases led to settlements to the tune of $535,000 while four disputes remain pending. The allegations of wrongdoing are all on excessive trading and churning.

Excessive trading is sometimes witnessed in cases where the broker exercises discretionary authority over client accounts. In other words, the client does not need to provide consent before a transaction is done by the broker. Excessive trading results in collection of excessive commission by the broker and is often inconsistent with the client’s investment objectives and financial situation. It constitutes a violation of industry standards under FINRA Rule 2111 (Suitability) and is often established through the use of financial information and ratios like in-and-out trading, account turnover rate and cost-equity ratio.

As recently as 6th November, 2020. FINRA Enforcement has initiated another investigation concerning Venturino, pertaining to possible violations of FINRA Rule 2111 (Suitability) and Rule 2010, as well as Section 10(b)5 of the SEC Exchange Act of 1934.

The firms that employed Venturino when the violations occurred are under the scanner too. FINRA Rule 3110 (NASD Rule 3010) requires employing firms to ensure that they have a supervision system in place that is designed to prevent violations and achieve compliance with FINRA policies and practices, as well as state and federal laws pertaining to securities. Among other practices, this may require meeting periodically with the broker to review the products they are selling and practices employed, as well as examining customer correspondence. Failure to adequately supervise exposes the firm to claims and damages.

With vast experience in working with investors to resolve issues pertaining to investments as well as mismanagement by brokers and financial advisors, you can rely on the attorneys at Haselkorn & Thibaut to pursue claims for recovery of monies through FINRA arbitration or litigation. Contact us for a confidential, no-cost discussion at at 1 888-628-5590 or visit InvestmentFraudLawyers.com for a free consultation on recovering your losses.