Yann C. Faho (also known as John Faho and Jann Faho), of New York, NY, a stockbroker registered with Aegis Capital Corp., has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Faho used unauthorized communication devices to correspond with customers regarding securities business. Letter of Acceptance, Waiver, and Consent No. 2020065621901 (December 15, 2023).
According to the AWC, from January of 2018 to December of 2021, Faho used his personal mobile phone to text 14 customers about securities-related business. Despite signing a certification agreeing to Aegis’s communication policies and attesting in annual compliance questionnaires to his compliance, Faho exchanged hundreds of business-related text messages with customers. These messages included discussions about market updates, investment recommendations, stock purchases, and account performance, none of which were captured or maintained by Aegis.
Aegis Capital Corp. did not approve personal text messaging for business communications, leading to the firm’s failure to preserve these messages. By using unapproved communication methods, Faho caused Aegis Capital Corp. to violate these recordkeeping requirements. Therefore, he violated FINRA Rule 2010.
FINRA Public Disclosure shows that Faho is referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $300,000.00 in damages based upon alleged churning, unauthorized trading, breach of contract, breach of fiduciary duty, and unsuitable trading during the time that he was associated with Aegis Capital Corp. FINRA Arbitration No. 20-02479 (July 7, 2021).
Another customer initiated investment related FINRA securities arbitration claim involving Faho’s conduct was settled on March 14, 2022, for $115,000 in damages. The claim, based on allegations of poor performance in stocks, related to Faho’s activities while associated with Aegis Capital Corp. FINRA Arbitration No. 21-00188.
Faho was associated with Aegis Capital Corp. in New York, NY, from February 11, 2016, to December 24, 2021.
