The Financial Industry Regulatory Authority has sanctioned former Aegis Capital Corp. broker Keith M. D’Agostino for allegedly pushing speculative microcap securities onto retirees who could not afford the risk. The AWC settlement, finalized in December 2025, imposes a two-year suspension and a $25,000 fine. Customer losses totaled more than $1.8 million across ten accounts. For conservative investors nearing retirement, the case is a warning that compliance departments do not always catch misconduct before it escalates.
What happened
D’Agostino, registered through Aegis Capital Corp. (CRD# 15007) from 2014 through 2023, allegedly recommended penny stocks and other speculative microcap securities to elderly clients with low risk tolerance. FINRA found the investments were unsuitable given each customer’s age, income needs, and stated investment objectives. The misconduct persisted from July 2020 through June 2023. During this period, D’Agostino allegedly collected commissions on trades that clients neither requested nor understood.
According to the settlement document, AWC No. 2022075471001, D’Agostino failed to perform adequate due diligence on the recommendations. He did not assess whether the thinly traded issuers could meet ongoing financial obligations. Several of the securities lost more than 80 percent of their value within months of purchase. One client reportedly saw a $250,000 retirement account dwindle to less than $40,000 in under eighteen months.
Clients had specifically told D’Agostino they relied on their portfolios for retirement income. Some were in their seventies and eighties. FINRA concluded that the concentration in speculative equities violated suitability obligations under FINRA Rule 2111. The rule requires that a broker have a reasonable basis to believe a recommendation is suitable for the customer based on their financial situation, risk tolerance, and investment experience.
Key facts
| Broker name | Keith M. D’Agostino |
| CRD number | 2837860 |
| Member firm | Aegis Capital Corp. (CRD# 15007) |
| Misconduct period | July 2020 – June 2023 |
| Customer losses | $1.8 million+ (10 accounts) |
| Settled complaints | 15 cases for $5.6 million+ |
| Pending claims | 7 claims seeking ~$2.4 million |
| FINRA fine | $25,000 |
| Suspension | Two years |
| AWC number | 2022075471001 |
Aegis Capital Corp. supervisory failures
Aegis Capital is not a stranger to supervisory scrutiny. In 2021, the firm agreed to pay $2.8 million to settle FINRA allegations that it failed to monitor unsuitable trading and excessive activity by its brokers. The consent order cited widespread supervisory deficiencies in branch offices across the Northeast. Yet despite that earlier enforcement action, the firm apparently did not tighten its compliance controls enough to prevent the D’Agostino scheme from persisting for three additional years.
The D’Agostino case adds to that pattern. FINRA noted that Aegis had received multiple red flags from clearing reports and customer complaints during the 2020–2023 period. Yet the firm did not place D’Agostino on heightened supervision or restrict his trading authority until after regulators opened a formal inquiry. Investors who relied on the firm’s compliance infrastructure paid the price.
Broker-dealers are required under FINRA Rule 3110 to establish and maintain a system to supervise the activities of each registered representative. When a firm ignores repeated customer complaints about the same broker, it risks liability for negligent supervision. Aegis Capital’s supervisory record suggests a culture that prioritized revenue generation over investor protection during the relevant period.
What investors should do
Investors who held accounts with D’Agostino at Aegis Capital should pull their account statements from the period in question. Look for penny stocks, microcap issuers, and concentrated positions that you did not initiate yourself. Compare the purchase dates against any written investment policy statements on file.
Brokers with histories of multiple customer complaints, like D’Agostino’s fifteen settled cases, often leave a paper trail in the BrokerCheck database. Examine the disclosure timeline to see whether your losses occurred during a period of known supervisory failures. If the broker recommended investments in companies you had never heard of, and those companies subsequently halted trading or filed for bankruptcy, you may have a strong suitability claim.
Even if Aegis Capital is no longer your custodian, you can still file a FINRA arbitration claim. The six-year eligibility rule under FINRA’s Code of Arbitration Procedure typically allows claims to be filed within six years of the occurrence or event that gave rise to the claim. Many state securities laws provide longer look-back periods. The key is to act promptly once you discover the losses.
Common mistakes victims make after discovering losses
Many investors unintentionally weaken their cases by waiting too long to act. Here are specific mistakes to avoid.
Calling the firm before consulting an attorney. Broker-dealers often send victims to their compliance departments, where recorded statements can later be used against the investor in arbitration. An experienced securities lawyer can guide the preservation of evidence and the preparation of a demand letter that maximizes the likelihood of a pre-arbitration settlement.
Destroying old account statements. Even statements that show losses are critical evidence. They establish the timeline of purchases, the concentration of speculative positions, and the deterioration of account values. Without documentation, proving unsuitability becomes significantly harder.
Assuming the statute of limitations has expired. FINRA’s eligibility rule provides a six-year window, but state securities fraud statutes and discovery rules can extend that period in many jurisdictions. An attorney can evaluate whether tolling provisions apply in your case.
Accepting a small settlement without understanding the full claim value. Firms sometimes offer nuisance-value settlements early in the process. If your losses exceeded $100,000 and the broker had a pattern of misconduct, the claim may be worth far more than the initial offer.
How to recover your losses
Securities arbitration remains the most common path for investors who suffered losses through unsuitable recommendations. FINRA’s arbitration forum handles thousands of cases annually, and firms with prior supervisory settlements often face steeper exposure. The average FINRA arbitration award in suitability cases involving elderly investors has trended upward in recent years as panels show less tolerance for broker-dealers that fail to supervise repeat offenders.
Document every phone call, email, and statement discrepancy. If D’Agostino described a risky microcap stock as safe or guaranteed, preserve that representation. It can support a fraud claim beyond simple suitability. Screenshots, handwritten notes from meetings, and witness testimony from family members who attended the sales presentations can all strengthen your position in arbitration.
Investors should also consider that Aegis Capital’s 2021 supervisory settlement may be admissible as evidence of the firm’s knowledge that its compliance systems were inadequate. When a firm has already been fined for failures that mirror the current misconduct, arbitrators are more likely to find firm-level liability.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a national securities law firm with former Wall Street defense attorneys who now represent defrauded investors. The firm has recovered over $520 million in securities matters and holds a 98% success rate. With more than 95 years of combined experience, an AV Preeminent rating, and recognition by Super Lawyers, the firm handles Ponzi scheme cases, unsuitable investment claims, and broker misconduct nationwide.
Securities law is complex. Victims of investment fraud often do not know where to turn or how to preserve their claims. Haselkorn & Thibaut offers free consultations to evaluate potential recovery options under federal and state securities laws. Their attorneys work on a contingency basis: no recovery, no fee.
Contact Haselkorn & Thibaut today
If you suffered losses in an investment fraud or broker misconduct case, call Haselkorn & Thibaut at 1-888-885-7162 for a free consultation. You can also visit htattorneys.com to learn more about investor recovery options and to speak directly with an experienced securities attorney.
This article is for informational purposes only and does not constitute legal or investment advice.
