Arkady Ginsburg of New York, New York, a stockbroker currently registered with Aegis Capital Corp, has been suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings of his excessive trading in customers’ accounts during the time that he was employed by Aegis Capital Corp. Letter of Acceptance, Waiver, and Consent No. 2019064898601 (March 23, 2022).
According to the AWC, between August 2014 and December 2015, and again between March 2018 and June 2020, Ginsburg engaged in unsuitable and excessive trading in customer accounts.
The AWC states that the first customer established an account with Ginsburg at Aegis Capital Corp with $202,000.00 in funds. An additional $66,000.00 had been deposited by the customer. Between August 2014 and December 2015, at least 252 trades had been executed by Ginsburg in the customer’s account. FINRA states that the account had an annualized turnover rate of 50.7 and annualized cost-to-equity ratio of 48.68 percent, resulting in $32,255.00 in commissions for Ginsburg and $157,539.00 in market losses for the customer.
The second customer invested $1,600,000.00 at Aegis Capital Corp through Ginsburg in March of 2018. Between March 2018 and June 2020, Ginsburg effected 384 trades in the investment account. This resulted in an annualized turnover rate of 17.78, annualized cost-to-equity ratio of 34.55 percent, $76,303.00 in commissions, and $509,863.00 in market losses for the customer.
FINRA states that the third customer had an account with Aegis Capital Corp through Ginsburg beginning in February 2018. Between January 2019 and May 2020, the customer’s account had an annualized turnover rate of 8.88 and annualized cost-to-equity ratio of 30.82. The customer paid $5,033.00 in commissions while suffering losses of $19,238.39.
The regulator states that Ginsburg controlled customers’ accounts, as the volume and frequency of the trades were largely determined by him. He made $113,591.00 from those customers because of unsuitable and excessive trades. He violated FINRA Rules 2010 and 2111 for this reason.
FINRA Public Disclosure shows that on May 30, 2019, a customer initiated investment related FINRA securities arbitration claim involving Ginsburg’s conduct was resolved for $12,635.22 in damages based upon accusations of unsuitable investment recommendations and unauthorized trading by Ginsburg when he was associated with Aegis Capital Corp. FINRA Arbitration No. 18-00408 (May 30, 2019).
Ginsburg has been registered with Aegis Capital Corp since July 2, 2014.
