Former Aegis Capital Broker Sean T. Sullivan Faces FINRA Complaint for Unauthorized Trading and Disclosure Failures

Former broker Sean T. Sullivan (CRD #6283466) is under fire from the Financial Industry Regulatory Authority (FINRA) for two separate but equally serious allegations: unauthorized trading and disclosure failures. The complaint, filed on September 23, 2025, claims Sullivan executed trades without client approval and failed to disclose a felony charge, raising questions about his integrity and compliance record (Case #2022075569401).

Trading Without Authorization Raises Investor Concerns

According to FINRA, Sullivan placed 14 unauthorized trades on June 24 and June 28, 2022, across the accounts of four different customers. The trades, which together totaled more than $250,000 in principal value, were executed without prior consent in non-discretionary accounts.

• Customer A: Three stock purchases worth approximately $8,971, which were later canceled after the customer and her husband complained.
• Customer B: Five purchases totaling about $49,062 and three sales worth $49,591; these trades were also reversed following complaints.
• Customer C: One stock sale of $7,807, canceled after the customer raised concerns.
• Customer D: Two stock purchases totaling roughly $138,721. This customer closed their account soon after and later complained to a state regulator.

FINRA alleges these trades violated Rule 2010, which requires brokers to uphold high standards of commercial honor and fair dealing. Unauthorized trading in non-discretionary accounts breaches this duty and can result in both regulatory action and customer harm.

Disclosure Violations Highlight Compliance Issues

In addition to the unauthorized trading allegations, FINRA accuses Sullivan of failing to disclose a felony charge on his Form U4 as required under industry rules. On March 2, 2022, Sullivan was charged with first-degree burglary in New York. Industry rules mandate that registered representatives disclose such charges within 30 days by amending their Form U4, but Sullivan allegedly failed to do so.

According to the complaint, Sullivan never filed the required amendment before Aegis Capital discharged him on July 8, 2022. His next employer, Sovereign Global Advisors, later discovered the charge during a background check and filed the disclosure on July 28, 2022. Although the felony charge was ultimately dismissed and expunged in 2023, FINRA maintains that the failure to timely disclose was both willful and material.

By failing to update his Form U4, Sullivan is charged with violating FINRA By-Laws Article V, Section 2(c), Rule 1122 and Rule 2010. These rules collectively require brokers to provide accurate and timely information about reportable events and to uphold high standards of commercial honor.

At this stage, these remain allegations only. No findings of fact or disciplinary sanctions have been imposed. If Sullivan does not respond to the complaint, FINRA may impose sanctions under Rule 8310, which could include fines, restitution, suspensions or even a permanent bar from the securities industry.

Why These Allegations Matter for Investors

The allegations against Sullivan highlight two serious risks for investors: unauthorized trading and failures in regulatory disclosure. Unauthorized trades not only undermine client trust but can expose customers to losses they never agreed to take on. At the same time, failing to disclose a felony charge on required regulatory forms raises additional concerns about transparency and integrity.

Although these matters remain unresolved, investors who worked with Sullivan through Aegis Capital or Sovereign Global Advisors may want to review their account activity carefully. If you notice trades you did not authorize, or if you suffered losses tied to high-risk or unsuitable investments, it may be time to explore your legal options.

Speak With Our Securities Law Team Today

At Sonn Law Group, we represent investors nationwide in cases involving unauthorized trading, regulatory violations and broker misconduct. Our firm operates on a contingency fee basis, meaning you do not owe fees unless we successfully recover compensation on your behalf.

Call us today at 833-912-3000 or complete our online form to schedule a private consultation with our legal team.