Fraud Inquiry Launched into Rogue Stockbroker Paul Falcon of Aegis Capital

Levin Law, P.A. (“Levin Law”) has filed an arbitration claim in the Financial Industry Regulatory Authority (“FINRA”) against Aegis Capital Corporation (“Aegis”) alleging approximately $1,000,000 in damages caused by the alleged misconduct of Aegis’s agent and employee, Paul Anthony Falcon. The Claimant in the case alleges that Paul Falcon breached this fiduciary duty to the claimant by engaging in unethical conduct to the detriment of the investors that entrusted their capital with him. The violations alleged in that claim include:

The violations include:

• Failure to treat claimants in a just and equitable manner
• Negligence, breach of contract, and breach of fiduciary duty
• Negligent supervision
• Violation of the Florida Securities and Investor Protection Act

Types of Broker Misconduct

Many people pursue careers in financial services because of the potential to earn substantial gains through the financial markets. This opportunity for significant gains come at a price: responsibility and accountability to the client. There are numerous types of broker misconduct regulated by the FINRA. A few examples of common broker misconduct include:

• Churning: excessively buying and selling securities to generate commissions, regardless of the client’s goals (selling the same security multiple times on the same day to earn fees)
• Front Running: occurs when a broker buys or sells securities from their personal account before executing a client order, and then closing their position based upon the new price, to maximize gains.
• Material Omissions: failing to inform an investor of facts material to the understanding of an investment (failing to notify a client of an expiration component to an option contract)
• Unsuitability: recommending a financial strategy that is inappropriate for a particular investor based upon that client’s goals (recommending a high-risk stock purchase for a retired client looking for a low-risk investment)
• Fraudulent Misrepresentation: falsifying facts about an investment, typically to gain interest in a risky investment product (lying about the pitfalls of a risky investment to dupe a casual investor)

Other types of misconduct include insider trading; misappropriation of funds; self-dealing; margin abuse; and breakpoint selling.

Claims Filed Against Paul Falcon

Multiple investors have filed a FINRA arbitration claim against Aegis alleging that Paul Falcon engaged in misconduct. If you have invested with Paul Falcon and have suffered monetary losses, you may have the right to recover your losses in a FINRA arbitration.
Levin Law continues to investigate whether Falcon has engaged in other activities that have lost investor capital, especially for investors located in North and Central America.

Paul Falcon’s History of Unethical Activity

According to publicly available documents, Paul Falcon is alleged to have a history of misconduct. In 1999, a customer alleged that Mr. Falcon did not adequately disclose the risks of purchasing a federal home mortgage debenture (material omission). Only a year later, another client alleged that he was duped by Falcon’s misleading practices (fraudulent misrepresentation). In 2001, a customer claimed that she instructed Falcon to purchase one security and that he ignored her request and instead purchased an entirely different investment (failure to follow instructions/unauthorized trading). In 2017, an investor alleged that Mr. Falcon engaged in unauthorized and excessive trading.. That case was settled for over $200,000.

These offenses show that Falcon is more concerned with earning money than the best interests of his clients. That is why Levin Law is taking the necessary steps to ensure that justice is served for innocent investors that have been misled and tricked into investing with this rogue trader.

Contact Attorney Brian Levin for More Information

If you invested your money with Paul Falcon and Aegis Capital and suffered financial losses, Levin Law may be able to help you recover your losses through FINRA arbitration.
If you have concerns about your investments and accounts with Paul Falcon or Aegis Capital, contact Levin Law for a free case evaluation to determine whether you can take legal action to recover your losses.