{"id":2160,"date":"2018-03-28T18:57:20","date_gmt":"2018-03-28T23:57:20","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=2160"},"modified":"2022-03-22T15:59:44","modified_gmt":"2022-03-22T20:59:44","slug":"aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/","title":{"rendered":"Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations"},"content":{"rendered":"<p>\t\t\t\tThe Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for <a href=\"https:\/\/www.investorlawyers.com\/failure-to-supervise.html\" target=\"_blank\" rel=\"noopener noreferrer\">inadequate supervision <\/a>and anti-money laundering systems related to its low-priced securities sales. According to the self-regulatory organization, the firm\u2019s supervisory system that oversees trading involving delivery versus payment (DVP accounts) was not designed in a manner reasonable enough to properly \u201cmonitor and investigate\u201d trading in the accounts, especially those involving securities transactions that were priced low.<\/p>\n<p>With DVP accounts, a broker-dealer making the trades does not have to be holding the securities that are bought and sold. FINRA said that Aegis did not \u201cadequately monitor or investigate\u201d seven DVP customer accounts, a number of which belonged to foreign financial firms, in which trading involved the liquidation of billions of dollars of such securities. These transactions resulted in millions of dollars in proceeds. A number of these institutional clients made the transactions for underlying customers whose identities Aegis did not know.<\/p>\n<p>The SRO found that Aegis failed to mark these transactions as suspect even after a clearing firm highlighted that there were anti-money laundering-related red flags. Aegis is settling FINRA&#8217;s case but without denying or admitting to the regulator&#8217;s findings.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/#more-2160\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for inadequate supervision and anti-money laundering systems related to its low-priced securities sales. According to the self-regulatory organization, the firm\u2019s supervisory system that oversees trading involving delivery versus payment (DVP accounts) was not designed in a manner reasonable enough to properly \u201cmonitor and investigate\u201d [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3739,3776,3740,3760,3795,3761],"tags":[3017,3018],"class_list":["post-2160","post","type-post","status-publish","format-standard","hentry","category-finra","category-finra-settlements","category-miscellaneous","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","tag-aegis","tag-anti-money-laundering"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations | SSEK Law Firm Blog<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for inadequate supervision and anti-money laundering systems related to its low-priced securities sales. Read more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations | SSEK Law Firm Blog\" \/>\n<meta name=\"twitter:description\" content=\"The Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for inadequate supervision and anti-money laundering systems related to its low-priced securities sales. Read more.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations | SSEK Law Firm Blog","description":"The Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for inadequate supervision and anti-money laundering systems related to its low-priced securities sales. 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Read more.","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations","datePublished":"2018-03-28T23:57:20+00:00","dateModified":"2022-03-22T20:59:44+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/"},"wordCount":529,"keywords":["Aegis","Anti-Money Laundering"],"articleSection":["FINRA","FINRA Settlements","Miscellaneous","SEC Enforcement","SEC Settlements","Securities and Exchange Commission"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/","url":"https:\/\/www.investorlawyers.com\/blog\/aegis-capital-to-pay-over-1m-to-the-sec-and-finra-to-settle-allegations-involving-low-priced-securities-and-anti-money-laundering-violations\/","name":"Aegis Capital to Pay Over $1M to the SEC and FINRA to Settle Allegations Involving Low-Priced Securities and Anti-Money Laundering Violations | SSEK Law Firm Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2018-03-28T23:57:20+00:00","dateModified":"2022-03-22T20:59:44+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"The Financial Industry Regulatory Authority has fined Aegis Capital Corp. $550K for inadequate supervision and anti-money laundering systems related to its low-priced securities sales. 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