2023-11-17 sec-litreleases litigation_release 65 KB 1,840 chars

SEC v. Alan Z. Appelbaum, No. LR-25895, Southern District of Florida (Nov. 17, 2023) — Press Release

raw: Alan Z. Appelbaum

Alan Z. Appelbaum, No. LR-25895 (Nov. 17, 2023)

Caption
SEC v. Alan Z. Appelbaum
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summary

Former Aegis Capital Corporation representative Alan Z. Appelbaum received a final judgment for making unsuitable investment recommendations and engaging in unauthorized trading.

paragraph

The SEC obtained a final judgment against Alan Z. Appelbaum for recommending high-risk 'steepener' products to seven retail customers with unsuitable risk tolerances. The court ordered Appelbaum to pay a $50,000 civil penalty, $42,000 in disgorgement, and $5,500 in prejudgment interest. The judgment also provides for permanent injunctive relief under the Securities Act and Exchange Act.

narrative

The U.S. Securities and Exchange Commission obtained a final judgment against Alan Z. Appelbaum, a former registered representative of Aegis Capital Corporation, for violating suitability requirements and engaging in unauthorized trading. The SEC alleged that Appelbaum recommended variable interest rate structured products, known as 'steepeners,' to seven retail customers whose moderate risk tolerances and time horizons were inconsistent with the securities. Additionally, the complaint alleged that Appelbaum made false and misleading statements to prevent customers from closing their accounts. Without admitting or denying the allegations, Appelbaum consented to the entry of the final judgment in the Southern District of Florida. The settlement includes permanent injunctive relief under Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act. Financial sanctions include a $50,000 civil monetary penalty, $42,000 in disgorgement, and $5,500 in prejudgment interest.

Enriched metadata

Scheme
broker-dealer-fraud (95%)
Court
Southern District of Florida
Outcome
settled
Disgorgement
$42,000
Civil penalty
$50,000
Entity
Alan Z. Appelbaum
Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
Section 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionAlan Z. Appelbaum
Keywords
appelbaumalan appelbaumsecurities exchangefinalalansecuritiessecexchange commissionfinal againstformer registeredregistered representativeunauthorized tradingexchangeunsuitablerecommendations

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 3
  • $50K $50,000 $10K–$100K
  • $42K $42,000 $10K–$100K
  • $6K $5,500 <$10K
Entities 5
  • person alan z. appelbaum
  • person final judgment
  • agency Securities and Exchange Commission
  • person unauthorized trading
  • court united states district court for the southern district of florida
Triples 11
  • United States District Court For The Southern District Of Florida entered final judgment against Alan Z. Appelbaum
  • Securities And Exchange Commission filed complaint on July 28, 2022
  • Alan Z. Appelbaum violated customer-specific suitability requirements applicable to broker-dealers
  • Alan Z. Appelbaum made unsuitable recommendations of variable interest rate structured products to seven retail customers
  • Alan Z. Appelbaum made false and misleading statements to some of the customers
  • Alan Z. Appelbaum engaged unauthorized trading
  • Alan Z. Appelbaum consented entry of final judgment
  • Final Judgment orders Alan Z. Appelbaum to pay civil monetary penalty of $50,000
  • Final Judgment orders Alan Z. Appelbaum to pay disgorgement of $42,000
  • Final Judgment orders Alan Z. Appelbaum to pay prejudgment interest of $5,500
  • Securities And Exchange Commission was led by James Connor and Eugene Hansen
PDF (from attached: judgment)
SEC v. ALAN Z. APPELBAUM · Source
Text layers
Extracted body text (1,840c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25895 / November 17, 2023 Securities and Exchange Commission v. Alan Z. Appelbaum, No. 22-81115-CIV-CANNON/Reinhart (S.D. Fla. filed July 28, 2022) SEC Obtains Final Judgment Against Former Registered Representative Charged with Unsuitable Investment Recommendations and Unauthorized Trading On November 14, 2023, the U.S. District Court for the Southern District of Florida entered a final judgment against Alan Z. Appelbaum, a former registered representative of Aegis Capital Corporation. The SEC’s complaint was filed on July 28, 2022. According to the complaint, Appelbaum violated the customer-specific suitability requirements applicable to broker-dealers by making unsuitable recommendations of certain variable interest rate structured products, commonly referred to as “steepeners,” to seven retail customers. The complaint alleges that the recommendations were unsuitable because the customers had “moderate” risk tolerances and an unwillingness to lose their entire invested principal and, in many cases, also had an investment time horizon inconsistent with the securities. In addition, the complaint alleges that Appelbaum made false and misleading statements to some of the customers to prevent them from closing their accounts and engaged in unauthorized trading. Without admitting or denying the SEC’s allegations, Appelbaum consented to entry of the final judgment, which provides for permanent injunctive relief under Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder. The final judgment also orders Appelbaum to pay a civil monetary penalty of $50,000 and disgorgement of $42,000 plus prejudgment interest of $5,500. The SEC’s litigation was led by James Connor and Eugene Hansen. Final Judgment
OCR text (1,840c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25895 / November 17, 2023 Securities and Exchange Commission v. Alan Z. Appelbaum, No. 22-81115-CIV-CANNON/Reinhart (S.D. Fla. filed July 28, 2022) SEC Obtains Final Judgment Against Former Registered Representative Charged with Unsuitable Investment Recommendations and Unauthorized Trading On November 14, 2023, the U.S. District Court for the Southern District of Florida entered a final judgment against Alan Z. Appelbaum, a former registered representative of Aegis Capital Corporation. The SEC’s complaint was filed on July 28, 2022. According to the complaint, Appelbaum violated the customer-specific suitability requirements applicable to broker-dealers by making unsuitable recommendations of certain variable interest rate structured products, commonly referred to as “steepeners,” to seven retail customers. The complaint alleges that the recommendations were unsuitable because the customers had “moderate” risk tolerances and an unwillingness to lose their entire invested principal and, in many cases, also had an investment time horizon inconsistent with the securities. In addition, the complaint alleges that Appelbaum made false and misleading statements to some of the customers to prevent them from closing their accounts and engaged in unauthorized trading. Without admitting or denying the SEC’s allegations, Appelbaum consented to entry of the final judgment, which provides for permanent injunctive relief under Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder. The final judgment also orders Appelbaum to pay a civil monetary penalty of $50,000 and disgorgement of $42,000 plus prejudgment interest of $5,500. The SEC’s litigation was led by James Connor and Eugene Hansen. Final Judgment

Related documents (1)