David L. Sheppard, of New York, New York, a stockbroker formerly registered with Aegis Capital Corp., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed a FINRA investigation into allegations of his sales practice violations. Letter of Acceptance, Waiver and Consent, No. 2016048470101 (Apr. 6, 2017).
According to the AWC, FINRA launched an investigation into whether four customers’ accounts had been excessively churned and traded by Sheppard. Pursuant to FINRA Rule 8210, FINRA sent Sheppard a letter in 2017 which requested that he provide FINRA staff with recorded testimony concerning the allegations of his wrongdoing.
Apparently, Sheppard reached out to FINRA staff on February 27, 2017, to indicate that he received FINRA’s letter but that he would not at any point provide testimony before FINRA staff. FINRA found Sheppard’s failure to cooperate in the investigation to constitute violations of FINRA Rules 2010 and 8210.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Sheppard has been identified in three customer initiated investment related disputes containing allegations of Sheppard’s misconduct while employed with PaineWebber and Aegis Capital Corp. Specifically, on January 6, 1999, a customer filed an investment related written complaint involving Sheppard’s conduct, in which the customer requested more than $5,000.00 in damages based upon allegations that Sheppard failed to properly apprise the customer of the risks pertaining to margin trading.
Subsequently, on April 17, 2015, a customer initiated investment related oral complaint regarding Sheppard’s activities was resolved for $40,000.00 in damages based upon allegations that Sheppard was liable for the customer’s losses pertaining to stock and over-the-counter equity transactions that had been effected in the customer’s account. Further, on December 2, 2015, a customer filed an investment related written complaint involving Sheppard’s conduct, in which the customer requested $86,088.44 in damages based upon allegations that Sheppard breached his fiduciary duties to the customer, utilized the customer’s margin account without authorization, and effected transactions in the customer’s account which were neither suitable nor authorized by the customer.
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