Erez Law is currently investigating former Aegis Capital Corp. broker Shadi Barakat (CRD# 5031281) regarding excessive trading and unsuitable investment recommendations. Barakat has been registered with Spartan Capital Securities, LLC in New York, New York, since May 2017. Previously, he was registered with Aegis Capital Corp. in New York, New York, from 2010 to 2017.
In September 2024, he failed to provide FINRA with on-the-record testimony as a part of its investigation into whether he engaged in churning and excessive trading in his customers’ accounts. The complaint alleges that his refusal to appear for testimony impeded FINRA’s investigation into his potential misconduct.
Shadi Barakat Customer Complaints
He has been the subject of five customer complaints between 2013 and 2023, according to his CRD report:
February 2023. “Time frame: 2010-2017; client alleges unsuitable trading and unauthorized trading.” The customer sought $200,000 in damages, and the case was settled for $29,500.
June 2022. “Time Frame: 2017 – Present. Allegations: Unsuitable Investment, Negligent Misrepresentation, Breach of Fiduciary Duty, Failure to Supervise.” The case was settled for $60,000.
March 2017. “Time frame: 06/01/2013 to 06/01/2016. Claimant alleges excessive trading and unsuitable investment recommendations.” The customer sought $652,346 in damages, and the case was settled for $150,000.
October 2015. “Time frame: unspecified. Claimant alleges unsuitability, unauthorized transactions, negligence, misrepresentation and breach of fiduciary duty.” The customer sought $195,723.67 in damages, and the case was settled for $35,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Aegis Capital Corp. may be liable for investment or other losses suffered by Shadi Barakat’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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