Silver Law Group represents investors in claims against Aegis Capital relating to accounts managed by Keith Dagostino. Dagostino is the subject of eighteen disclosures, all customer disputes. Fifteen of these disputes were filed since 3/6/2023, and seven are still pending.
The first four disputes were filed in August of 2024, and are all pending. Three of these contain similar allegations of unsuitability and breach of fiduciary duty. The fourth requests the return of a $1M investment following an IPO that never occurred. In the broker rebuttal, Dagostino wrote that the IPO was never a certainty, and that the contract specifically stated that EF Hutton would repurchase the shares from the claimant at the original purchase price. The repurchase is slated to occur on or about October 30, 2024.
The next three disputes were filed on 5/2/2024, 5/7/2024, and 7/15/2024, and were settled. They contain similar allegations of unsuitability and “account mismanagement.” The total settlement damages for these three disputes are $2,017,500.
Two more disputes filed on 04/05/2024 and 1/26/2024 are still pending. Both contain allegations of unsuitability, breach of fiduciary trust, fraud, and other complaints. Only one lists requested damages, totaling $500,000.
Several disputes filed in 2023 were settled, except one. A customer dispute filed on 8/15/2023 also alleged unsuitable investments. This dispute is still pending. In most of these disputes, Dagostino states that the “allegations are wholly without merit.” The earliest dispute, filed on 3/6/2023, also alleged “poor performance and suitability.” The client requested damages of $118,234.37, and the claim was settled for $90,000.
What Is Unsuitability Or FINRA Rule Best Interest?
Under Regulation Best Interest, brokers are required to make recommendations based on each investor’s profile and how it would serve the best interest of the investor and their profile.
When an investor alleges “unsuitability,” it simply means that a broker or investment advisor recommended something to them that was not in line with their profile or investment objectives. For instance, investments such as pot stocks or REITs, would be better suited for an investor who can tolerate higher risks in their portfolio. These would not be suitable for retirees seeking a stable income.
Extremely high-risk investments such as GWG Holdings L-Bonds were intended for institutional investors and others who could handle the risk involved as smaller components of an overall portfolio. They were never intended for individual investors without full disclosure of the risks and the costs.
Did You Invest With Keith Dagostino?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.