• April 20, 2019
• Aegis Capital Corp

Alan Appelbaum is a former Financial Advisor at Aegis Capital Corp. in Boca Raton, FL.  Alan Appelbaum has been in the securities industry since 1976 and previously worked at Herbert J. Sims & Co. and Ryan Beck & Co.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Alan Appelbaum has been the subject of eleven (11) customer complaints during his career, alleging various sales practice misconduct.  Among the complaints against Alan Appelbaum include the following:

• December 2015—”ALLEGATIONS INCLUDE FAILURE TO RECOGNIZE CLAIMANTS CHANGE IN CIRCUMSTANCES AND DESIRE TO PURSUE A LOW RISK CONSERVATIVE STRATEGY, UNSUITABLE TRADING IN PROPRIETARY INVESTMENTS AND STRUCTURED PRODUCTS BETWEEN THE YEARS OF 2012 AND 2014.”  The matter was settled for $20,000. 
• August 2015—”CLIENT ALLEGED UNSUITABLE PRODUCT AND CHURNING.”  The customer alleged damages of $200,000.
• August 2014—”CLIENT ALLEGES BREACH OF FIDUCIARY DUTY, A FAILURE TO SUPERVISE, NEGLIGENCE, FRAUD, BREACH OF CONTRACT AND VIOLATION OF NASD AND FINRA RULES.”  The matter was settled for $25,000. 
• March 2006—”CUSTOMER FEELS BROKERS MARK-UP ON BONDS WERE EXCESSIVE. IMPROPER CONDUCT.”  The matter was settled for $250,000.
• December 2003—”CUSTOMER ALLEGES NEGLIGENCE, BREACH OF FIDUCIARY DUTY AND IMPROPER MANAGEMENT AND MONITORING OF HIS ACCOUNT.”  The matter was settled for $42,500

In addition to the customer complaint disclosures, Alan Appelbaum has been the subject of three regulatory events during his career.  In 1982, the SEC censured him for “VIOLATING THE ANTI-FRAUD AND RECORD KEEPING PROVISIONS OF THE FEDERAL SECURITIES LAWS AS WELL AS THE RULES OF MUNICIPAL SECURITIES RULE MAKING BOARD.”  In 1991, the National Associated of Securities Dealers (predecessor to FINRA) alleged that he “EFFECTED TRANSACTIONS IN NON-EXEMPT SECURITIES WHILE FAILING TO MAINTAIN ITS REQUIRED MINIMUM NET CAPITAL.”  Finally, in 2006, the State of New Hampshire found that
“MR. APPELBAUM SERVICED EIGHT BROKERAGE ACCOUNTS FOR NH RESIDENTS, WHICH WERE OPENED AND TRANSACTED UNDER ANOTHER REGISTERED REPRESENTATIVE’S NUMBER. MR. APPELBAUM WAS NOT LICENSED TO SELL SECURITIES IN NH. THE BUREAU ALLEGED THAT MR. APPELBAUM ENGAGED IN UNLICENSED ACTIVITY IN VIOLATION OF RSA 421-B:6,I.”  He was fined $55,000 by the State of New Hampshire.

For a copy of Alan Appelbaum’s CRD, click https://brokercheck.finra.org/individual/summary/500336

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.  

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.  We can be reached at 800.931.8452 or by email at mwolper@wolperlawfirm.com.