Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » FINRA Sanctions Another Aegis Capital Stockbroker For Unauthorized Trading

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M. B. Schreiber (also known as Mickey Schreiber), of Red Bank, New Jersey, a stockbroker registered with Aegis Capital Corp., has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Schreiber engaged in unauthorized trading. Letter of Acceptance, Waiver, and Consent No. 2020065693301 (October 31, 2022).

According to the AWC, between September 2017 and September 2021, during the time that he was associated with Aegis Capital Corp., Schreiber executed at least 295 trades while exercising discretionary trading authority in the accounts of 27 customers. Schreiber did not obtain prior written authorization from Aegis and the customers. Schreiber also marked 181 order tickets as solicited when in fact, he had solicited them. Schreiber violated FINRA Rules 2010 and 4511 and NASD Rule 2510(b).

This is not the first time that Schreiber has been the subject of a regulatory action concerning Schreiber’s conduct in the securities industry. FINRA Public Disclosure shows that Schreiber was fined $10,000.00 and suspended for two months by FINRA because Schreiber borrowed money from a customer. Letter of Acceptance, Waiver, and Consent No. 2007010982301 (March 10, 2010). According to the AWC, First Montauk Securities Corp. prohibited stockbrokers from borrowing from customers. Schreiber violated NASD Conduct Rules 2110 and 2370.

FINRA Public Disclosure also shows that Schreiber is referenced in four customer initiated investment related disputes concerning Schreiber’s conduct while associated with securities broker dealers, including The Concord Equity Group and Aegis Capital Corp. On May 7, 2002, a customer initiated investment related NASD securities arbitration claim involving Schreiber’s conduct was settled for $80,000.00 in damages based upon allegations that Schreiber made unsuitable recommendations and made misrepresentations of material fact in connection with the sale of fixed income products when Schreiber was associated with The Concord Equity Group. NASD Arbitration No. 0004412.

Schreiber was also referenced in a complaint filed on July 29, 2002, in which the customer requested $155,500.00 in damages based upon allegations that Schreiber made unsuitable recommendations of over-the-counter equities.

On March 23, 2020, a FINRA securities arbitration claim involving Schreiber’s conduct was settled for $40,000.00 in damages based upon allegations that Schreiber made unsuitable recommendations, engaged in unauthorized trading, churned the customer’s account, made misrepresentations of material fact, was negligent, breached a contract, and breached his fiduciary duties during the time that Schreiber was associated with Aegis Capital Corp. FINRA Arbitration No. 20-00477.

Schreiber is also referenced in a FINRA securities arbitration claim in which the customer requested compensation based upon allegations that Schreiber made unsuitable recommendations and breached a contract in connection with the sale of stocks to the Aegis Capital Corp. customer. FINRA Arbitration No. 22-00597 (March 21, 2022).

Schreiber was associated with Aegis Capital Corp. in Red Bank, New Jersey, from August 2016 to November 2022. Schreiber was discharged by Aegis Capital Corp. on November 18, 2022, because of FINRA’s enforcement action against him.