FINRA has named Aegis Capital Corp., Charles D. Smulevitz (CRD# 5099387),
and Kevin C. McKenna (CRD# 1343870) in a complaint concerning a microcap
stock scheme. FINRA filed disciplinary proceedings against Aegis Capital
Corp., Charles D. Smulevitz, and Kevin C. McKenna in August 2014. The
respondents submitted an offer of settlement in July 2015, which FINRA
FINRA's complaint against Smulevitz and McKenna concerns alleged misconduct while the two
were registered with Aegis as Chief Compliance Officer.
- Smulevitz was registered with Aegis from June 1, 2009 until his termination
on July 20, 2012.
- McKenna has been registered with Aegis since June 9, 2010.
According to FINRA’s findings, the misconduct took place between
April 2009 and June 2011 when Aegis generated more than $1 million in
commissions through illicit sales. FINRA accused Aegis of selling shares
that were not registered with the SEC even though registration was required.
FINRA says that a third party, ML, who was not affiliated with Aegis, referred
customers to Aegis and controlled activity in many customers’ Aegis
accounts. It is important to note that, at the time, ML had already been
the subject of three regulatory actions – two of which are relevant
to the conduct set forth in this complaint.
Back in 2008, ML had been charged by the SEC with aiding and abetting securities
fraud. This is the same type of misconduct that allegedly took place in
this case. In 2009, the SEC banned ML from participating in penny stock
offerings. A month later, ML was barred completely from the securities industry.
Allegedly, the microcap stock sales in this case were part of a larger
plan to evade the SEC’s registration requirements. The SEC accuses
Aegis, Smulevitz, and McKenna of failure to establish, enforce, and maintain
an adequate supervisory system at the firm to prevent non-compliance with
Section 5 registration requirements.
If you invested with Aegis Capital Corp. between April 2009 and June 2011
and you lost a substantial amount of money, we invite you to contact the
securities fraud lawyers at Meyer Wilson to tell us what happened. We
will provide you with a
free review of your case
to inform you of your legal rights and options.