New York-based stockbroker Shadi Taysir Barakat (CRD# 5031281) is the subject
of two pending customer complaints, according to public records published
by the Financial Industry Regulatory Authority (FINRA).
Barakat is currently registered with Spartan Capital Securities in New
York, N.Y. where he has been employed since May 2017. He was previously
a stockbroker with Aegis Capital from March 2010 through May 2017.
According to Mr. Barakat’s BrokerCheck, a customer complaint was
filed in March 2017 accusing him of excessive trading and making unsuitable
investment recommendations of common and preferred stock while he was
employed with Aegis. The complaint seeks damages of $642,346, which includes
trading losses and commissions from June 1, 2013 through June 1, 2016.
A second pending complaint also stems from Barakat’s time with Aegis.
That complaint, which was filed in 2015, alleges that he completed unauthorized
transactions, acted with negligence, misrepresented investment opportunities,
made unsuitable recommendations, and committed a breach of fiduciary duty
while with Aegis. The customer in that case seeks alleged damages of $195,723.
In 2013, Aegis settled yet another customer case involving misconduct by
Barakat for $360,000. In that case it was alleged that Barakat churned
investments and made unsuitable recommendations.
Shadi Barakat’s BrokerCheck report also reveals six tax liens against him.
In May 2017, the IRS filed a $118,743.74 lien against Barakat.
The City of New York filed a $4,100 tax lien in the Civil Court of New
York in April 2017. That same month, the City of New York filed a $8,544
tax lien in the County Clerk’s Office. Also in April 2017, the State
of New York filed a $15,612.29 lien against him in the County Clerk’s Office.
In April 2015, the State of New York filed a $1,758.66 lien against Barakat,
and a $14,331.81 tax lien filed against him by the State of New York in May 2014.
In addition to his current registration with Spartan Capital Securities
and previous registration with Aegis, Barakat has previous registrations
with VFinance Investments, Mercer Capital, Joseph Gunnar & Company
and Gunnallen Financial, all based out of New York, NY.
He is a registered broker licensed to do business in the states of California,
Maryland, New York, and Ohio.
Know Your Client Rule Violations
FINRA Rule 2111 is also known as the “Know Your Customer” rule.
The rule requires stockbrokers to make suitable recommendations for clients.
In order to do so, the broker is obligated to gather information about
your situation, income, and assets to make appropriate investment advisements.
The Know Your Customer rule means your broker should not only know your
investment goals, but also know each investment’s pros and cons
before making a recommendation.
An investment option that is suitable for you today might not be suitable
for you under future circumstances. By following the Know Your Customer
rule, your broker will be able to evaluate your needs and your tolerance
for risk to ensure suitable recommendations are made.
If you have invested money with Shadi Taysir Barakat or any other broker
who has made unsuitable investment recommendations, the trusted investment
fraud attorneys at Meyer Wilson would like to speak with you. Call today for a