FINRA sanctioned Keith M. D’Agostino (CRD# 2837860), a former broker at Aegis Capital Corp. (CRD# 14959) in Boca Raton, Florida, for willful violations of Regulation Best Interest after recommending speculative penny stocks to retired investors. D’Agostino’s 24-month suspension and $25,000 fine mark one of the clearest Reg BI enforcement actions involving senior accounts — and his BrokerCheck report reveals 26 total disclosures, including 22 settled customer complaints exceeding $5.6 million.
Who is Keith M. D’Agostino?
Keith Michael D’Agostino held Series 7 and Series 63 registrations and operated primarily out of Aegis Capital Corp.’s Melville, New York office (though Aegis is headquartered at 1260 North Federal Highway, Suite 1101, Boca Raton, FL 33432). He was registered with Aegis from approximately 2014 until his resignation in November 2023, followed by a brief stint at EF Hutton before exiting the industry entirely.
D’Agostino’s BrokerCheck report shows 26 total disclosures, dominated by customer disputes. After the AWC settlement, he is no longer registered as a broker or investment adviser.
What the FINRA enforcement action found
Under AWC No. 2022075471001, filed December 2025, FINRA found that between July 2020 and June 2023, D’Agostino recommended speculative, low-priced microcap securities to 10 retired and senior investors with conservative investment profiles. These clients relied on their portfolios for retirement income and had stated objectives centered on capital preservation.
The recommendations violated Regulation Best Interest (Exchange Act Rule 15l-1(a)(1)), which requires brokers to act in the customer’s best interest when recommending securities. D’Agostino failed to meet the Care Obligation — he did not have a reasonable basis to believe the penny stock recommendations were in these clients’ best interests given their risk profiles and financial situations.
FINRA’s investigation also found violations of FINRA Rule 2010 (standards of commercial honor). The speculative microcap positions comprised up to 94% of some clients’ portfolios, creating extreme concentration risk.
Losses and harm to senior investors
| Metric | Detail |
|---|---|
| Customers affected | 10 retired/senior investors |
| Total losses | Over $1.8 million |
| Maximum portfolio concentration | 94% in penny stocks |
| Investment profile mismatch | Conservative/capital preservation clients |
| AWC fine | $25,000 |
| Suspension | 24 months (January 5, 2026 – January 4, 2028) |
| AWC number | 2022075471001 |
Several clients lost substantial portions of their retirement savings. One pending dispute filed in October 2025 seeks $1,000,000 for breach of fiduciary duty and negligence related to D’Agostino’s recommendations at Aegis.
Customer complaints against Keith D’Agostino on BrokerCheck
A review of D’Agostino’s FINRA BrokerCheck reveals an extensive history of customer disputes:
| Date Filed | Allegations | Amount | Status |
|---|---|---|---|
| October 2025 | Breach of fiduciary duty, negligence | $1,000,000 | Pending |
| August 2024 | Failed Veg House (PlantX) IPO; unsuitable | $1,000,000 | Pending |
| 2024 | Over-concentration, unsuitable recommendations | $409,000 | Settled |
| January 2024 | Unsuitability, breach of fiduciary duty, fraud | Unspecified | Pending |
| November 2023 | Poor performance (stocks, 2018–present) | $60,000 | Pending |
| February 2022 | Suitability, misrepresentation, breach of fiduciary duty | $400,000 sought / $35,000 settled | Settled |
In total, 22 customer complaints have been settled for over $5.6 million combined, with 7 additional pending claims seeking approximately $2.4 million. D’Agostino’s complaint ratio far exceeds what FINRA considers typical for a registered representative.
Aegis Capital Corp.’s supervision failures
Aegis Capital Corp. bears responsibility for D’Agostino’s conduct. As the carrying firm, Aegis was obligated to supervise its registered representatives under FINRA Rules 3110 and 3120. The firm’s supervisory systems failed to detect or prevent the pattern of unsuitable penny stock recommendations to senior investors.
Aegis Capital has faced its own regulatory scrutiny. In 2021, the firm settled for $2.8 million related to supervision failures involving unsuitable and excessive trading. The pattern suggests systemic gaps in Aegis’s compliance infrastructure that left vulnerable investors exposed.
Under FINRA Rule 3110, firms must establish and maintain a supervisory system reasonably designed to achieve compliance. When a broker accumulates 26 disclosures and senior clients lose millions, that system has clearly failed.
What this means for investors
The D’Agostino case is a clear signal: FINRA is escalating Reg BI enforcement against individual brokers and their firms. Regulation Best Interest, effective since June 30, 2020, imposes a higher standard than the old suitability rule. Brokers must document a reasonable basis for every recommendation and disclose costs and conflicts of interest.
If your financial advisor at Aegis Capital or any firm recommended penny stocks, structured products, or other speculative investments that didn’t align with your risk tolerance or financial goals, you may have a Reg BI claim. The FINRA arbitration process allows investors to recover losses without going to federal court.
Frequently asked questions
What is Regulation Best Interest (Reg BI)?
Reg BI is an SEC rule effective June 30, 2020 that requires broker-dealers to act in their customer’s best interest when recommending securities transactions or investment strategies. It goes beyond the old suitability standard by requiring documentation of reasonable basis, cost disclosure, and mitigation of conflicts of interest.
How many complaints does Keith D’Agostino have on BrokerCheck?
D’Agostino’s BrokerCheck report shows 26 total disclosures. Of those, 22 customer complaints have been settled for over $5.6 million combined, and 7 pending claims seek approximately $2.4 million. His FINRA BrokerCheck profile is available at CRD# 2837860.
What is Aegis Capital Corp.?
Aegis Capital Corp. (CRD# 14959) is a FINRA-registered broker-dealer headquartered at 1260 North Federal Highway, Suite 1101, Boca Raton, FL 33432. The firm has faced multiple regulatory actions, including a 2021 settlement for $2.8 million related to supervision failures.
Can I recover losses from unsuitable investment recommendations?
Yes. Investors who lost money due to unsuitable recommendations can pursue recovery through FINRA arbitration. You do not need to go to federal court. FINRA arbitration is faster, less expensive, and does not require a minimum loss amount to file a claim.
Concerned about investment losses?
The securities attorneys at Haselkorn & Thibaut have recovered over $520 million for investors. With a 98% success rate, 95+ years of combined experience, and no fee unless you recover, they can help you understand your options.
This article is for informational purposes only and does not constitute legal or financial advice. If you believe you have been the victim of investment fraud or unsuitable recommendations, contact a qualified securities attorney. Visit FINRA BrokerCheck to research any financial advisor’s disciplinary history.
