According to a Press Release from the U.S. Securities and Exchange Commission (SEC), Malcolm Segal (CRD #1723563), a former stockbroker of Aegis Capital, was charged with conducting a Ponzi Scheme and stealing investor money to use for his own benefit.
The SEC alleged that Segal fraudulently sold certificates of deposits (CDs) to his customers by assuring them that they were FDIC-insured and claiming that he could get them higher interest rates of return than otherwise available to the general public. Segal then allegedly purchased CDs for his clients, but without their knowledge or consent, sold the CDs and kept the proceeds for himself. The SEC further alleged that Segal eventually began stealing directly from his customers by forging letters of authorization to facilitate the transfer of customer funds to personal accounts he controlled. The SEC further alleged that Segal stole directly from his customers’ brokerage accounts. Segal allegedly raised $15.5 million from investors, which he either spent on himself or used to pay interest and principal repayments to earlier investors in a Ponzi scheme fashion.
According to FINRA’s Disciplinary and Other FINRA Actions publication, Segal also failed to provide documents and information and appear for testimony as requested by FINRA. (See FINRA AWC No. 2014041990901)
According to FINRA’s Broker Check, Malcolm Segal has been permanently barred from acting as a broker or otherwise associating with firms to sell securities to the public. Segal was registered in the securities industry for twenty five (25) years with the following firm(s):
AEGIS CAPITAL CORP.
NEW YORK, NY
CUMBERLAND BROKERAGE CORPORATION
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.