The Financial Industry Regulatory Authority has penalized a Long Island, N.Y. broker after he was accused of recommending unsuitable investments for 10 of his clients, according to Advisor Hub.
Keith M. D’Agostino of Melville, a former broker with Aegis Capital Corp., was fined $25,000 and suspended for two years.
FINRA determined that from July 2020 to June 2023, D’Agostino allegedly recommended that the customers, all of whom were retired or elderly, purchase “speculative low-priced securities from microcap issuers.”. The customers had a low risk tolerance and their investment objectives were to preserve capital and generate income for retirement. As a result of the investments, which made up as much as 94% of their accounts, the customers lost a total of over $1.8 million.
D’Agostino was found to have violated the Securities and Exchange Commissions’ Regulation Best Interest and FINRA Rule 2010, which stipulates that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade. D’Agostino did not admit or deny the allegations but consented to the entry of FINRA’s findings, according to a letter of acceptance, waiver and settlement.
He voluntarily resigned from Aegis in November 2023 and is no longer registered as a broker or investment advisor.
D’Agostino’s lawyer, Liam O’Brien at McCormick & O’Brien in New York City, did not immediately respond to a request for comment on the matter. A spokesperson for Aegis did not immediately respond to a request for comment. D’Agostino could not be reached for comment.
The attorneys at Hyman Cotter PC have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact us at 312-291-4600 or through our online contact form for a no-cost evaluation of your matter.
