Aegis Capital Fined Into Submission for Failure to File Suspicious Activity Reports


Inaction and The Status Quo are Expensive

“The clampdown on money laundering and corruption is the common responsibility of all the countries in the world.”
– Wang Zhaowen, spokesman for the Bank of China

In the financial world, lackluster leadership coupled with inadequate compliance and anti-money laundering (AML) frameworks prove costly to the firm. Most recently, Aegis Capital found out the hard way; fined $1.3 million for its transgressions. The Securities and Exchange Commission (SEC) imposed a $550,000 fine for failure to file “suspicious activity reports”. In addition, the Financial Industry Regulatory Authority (FINRA) levied a $750,000 fine for failure to monitor and investigate overseas trades involving billions of shares of low-priced securities.

Legacy Matter or Business as Usual?

The brokers involved in the multi-year string of events have since departed the firm. Not to mention, the SEC fined the CEO $40,000 and a former Aegis AML Officer $20,000. The million dollar question then, no pun intended, is whether the aggregate fines are incentive enough to prevent future noncompliant behavior and occurrences. The record indicates Aegis Capital blatantly ignored suspicious activity.