**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading
Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.
Aegis Capital Broker Gilbert Kuta Suspended by FINRA – Timonium, MD
FINRA has suspended Aegis Capital broker Gilbert Kuta from the securities industry for ten days for exercising discretion without written authorization in customers’ accounts, in violation of NASD Rule 2510(b) and FINRA Rule 2010.
The alleged misconduct is said to have taken place from December 2017 through June 2018 while Mr. Kuta was registered with Capitol Securities Management, Inc. Mr. Kuta was also fined $5,000.
Mr. Kuta’s suspension is scheduled to begin on August 16, 2021, and end on August 27, 2021.
If you have lost money with Gilbert Kuta, or Capitol Securities Management, Inc., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent No. 2017052215403
Gilbert Kuta and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on July 27, 2021.
NASD Rule 2510(b) prohibits registered representatives from “exercis[ing] any discretionary power in a customer’s account” unless the customer has provided prior written authorization to the representative and the account has been accepted as a discretionary account, in writing, by the representative’s member firm. A violation of NASD Rule 2510(b) is also a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
During the relevant period, Mr. Kuta effected at least 50 discretionary trades in numerous customer accounts. Although the customers knew that Mr. Kuta was exercising discretion in their accounts, Mr. Kuta did not have prior written authorization to do so from any of the customers. Additionally, Capitol Securities Management had not approved any of these accounts for discretionary trading.
You can read more about discretionary trading here.
Gilbert Kuta (CRD#: 1084075)
Mr. Kuta has 38 years of experience in the securities industry. His FINRA CRD shows a total of eight customer disputes. Four of the customer disputes were settled, and the other four were denied.
Mr. Kuta first became registered with FINRA in December 1982. Mr. Kuta was registered as a General Securities Representative through an association with Capitol Securities Management, Inc. (CRD No. 14169) from August 2009 to March 2020. Since February 2020, Mr. Kuta has been registered as a General Securities Representative through his association with Aegis Capital.
In 1994, the Virginia State Corporation Commission issued a consent order requiring Mr. Kuta to comply with the provisions of a special supervision order. Likewise, in 1994, the Maryland Division of Securities issued a consent order requiring Mr. Kuta to comply with special supervision procedures. In 1995, the New York Stock Exchange censured Mr. Kuta and suspended him for one month for effecting unauthorized trades in customers’ accounts and for sharing in a loss in a customer’s account.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Gilbert Kuta, or Capitol Securities Management, Inc., contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at firstname.lastname@example.org or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.