Daniel James O’Neill (also known as Dan O’Neill and as Daniel James Oneill), of Melville, New York, a stockbroker formerly registered with Aegis Capital Corp, has been issued an Order Accepting Offer of Settlement by Financial Industry Regulatory Authority (FINRA) where O’Neill has been suspended from associating with any FINRA member in any capacity based upon findings that O’Neill executed unsuitable and excessive trades in a customer’s account. Department of Enforcement v. Daniel J. O’Neill, Disciplinary Proceeding No. 2021070337301 (December 6, 2021).
According to the Order, between July of 2014 to June of 2015, O’Neill’s excessive trading resulted in losses for a customer. The customer’s account had been controlled by O’Neill throughout this period. 456 trades with a principal value of $22,900,000.00 were made by O’Neill in the account, and most transactions were made without the customer’s authorization.
The Order states that the customer’s account had an annualized cost-to-equity ratio of 63.7 percent and an annualized turnover rate of 51.4. This resulted in commissions and sales credits totaling $110,446.00, with $66,000.00 designated for O’Neill. The customer experienced losses of $147,411.00.
FINRA states that O’Neill had no adequate basis for concluding that his recommended trades were suitable for the customer. O’Neill violated FINRA Rules 2010 and 2111 for excessive and unsuitable trading, and he violated FINRA Rule 2020 based on making 183 unauthorized trades in that customer’s account.
FINRA Public Disclosure shows that O’Neill has been identified in two customer initiated investment related disputes containing allegations of his wrongdoing. On March 13, 2017, a customer initiated investment related complaint involving O’Neill’s conduct was resolved for $12,500.00 in damages supported by accusations of O’Neill misusing margin and making unauthorized trades in the customer’s account while registered with Aegis Capital Corp.
On February 3, 2021, a customer filed an investment related FINRA securities arbitration claim regarding O’Neill’s activities where the customer requested compensatory damages founded on allegations that O’Neill provided unsuitable recommendations to the customer at Aegis Capital Corp. FINRA Arbitration No. 21-00273.
O’Neill was employed by Aegis Capital Corp between April 23, 2013, and July 29, 2021. He was discharged based upon accusations of him failing to make Aegis aware of FINRA’s investigation into his trading activities.
