- November 16, 2023
- Aegis Capital Corp
Gary Steven Costello (CRD#:6117388) is a registered broker and investment advisor for Aegis Capital Corp. in Boca Raton, FL
He entered the securities industry in 2016 and previously worked for Truist Advisory Services, Inc; Oppenheimer & Co. Inc.; Morgan Stanley; and Park Avenue Securities, LLC.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2023, Gary Costello became the subject of a customer dispute where, “Claimants assert claims for churning, unauthorized withdrawals, negligence, gross negligence, breach of fiduciary duty, breach of contract, breach of the duty of good faith and fair dealing, fraud and state securities law violations. 07/2019 – 12/2022.” The damage amount requested is $2,103,426 and the customer dispute is still pending.
In addition, Gary S. Costello has been the subject of several other customer disputes, along with one employment separation disclosure:
- August 25, 2023—“ Client alleges unauthorized trading occurred in his account in 2023.” The customer dispute is still pending.
- August 16, 2023—” Client alleges unauthorized trading occurred in his accounts in 2023.” The customer dispute is still pending.
- August 16, 2023—“Client alleges that unauthorized trading occurred in their accounts from January 2023 to August 2023.” The customer dispute is still pending.
- August 16, 2023—“ Client alleges that unauthorized trading occurred in his account from December 2022 to August 2023.” The customer dispute is still pending.
- August 14, 2023—“ Mr. Costello was terminated after the firm investigated various trade corrections and margin activity in his personal account as well as client accounts.” Truist Investment Services, Inc.
For a copy of Gary S. Costello’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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