Steven Luftschein, Formerly of Aegis Capital, Accused by FINRA of Churning and Unauthorized Trading

Luftschein is also named in a $200K customer complaint alleging excessive and unsuitable trading.

The Sonn Law Group is investigating allegations that Steven Luftschein committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Steven Luftschein (CRD#: 2690117) has been charged by FINRA with churning and excessively trading in the accounts of three of his customers, Customers A, B, and C from July 2014 through July 2016 (the “Relevant Period”).

During this period, FINRA alleged that Luftschein executed approximately 430 trades in the Customers’ accounts, and that Luftschen’s churning and excessive trading was unsuitable and caused combined losses of more than $250,000 from the Customers’ accounts. 

During the Relevant Period, Luftschein’s trading in the Customers’ accounts generated gross sales credits and commissions of approximately $136,200, with Luftschein receiving a large portion of this amount. FINRA also alleged that Luftschein executed 88 unauthorized trades with a total value of approximately $3.1 million in the three Customers’ accounts during the Relevant Period.

In addition to these allegations, Luftschein has ten disclosures on his BrokerCheck report since 2010.

January 2020 Customer Dispute

• Status: Pending
• Allegations: “Claimant alleges excessive and unsuitable trading, false and misleading statements.”
• Damage Amount Requested: $200,000.00

May 2018 Customer Dispute

• Status: Settled
• Allegations: “Claimant alleges negligence, unauthorized trading, churning, unsuitability, breach of contract, and breach of fiduciary duty.”
• Damage Amount Requested: $150,000.00
• Settlement Amount: $132,500.00

February 2018 Customer Dispute

• Status: Settled
• Allegations: “Claimant alleges unauthorized trading and unsuitable investment recommendations.”
• Damage Amount Requested: $1,461,217.00
• Settlement Amount: $569,962.38

August 2017 Customer Dispute

• Status: Settled
• Allegations: “Customers allege unsuitable investment recommendations, unauthorized trading, negligence, negligent supervision, federal securities law violations, Georgia blue sky law violations, control person liability and respondeat superior, breach of fiduciary duty and excessive trading from January 2010 through August 2011.”
• Damage Amount Requested: $2,172,561.00
• Settlement Amount: $800,000.00

April 2017 Customer Dispute

• Status: Settled
• Allegations: “Claimant alleges unsuitable investment recommendations, unauthorized trading, excessive trading, misrepresentations and omissions, breach of contract, and breach of fiduciary duty.”
• Damage Amount Requested: $269,131.00
• Settlement Amount: $100,000.00

June 2016 Customer Dispute

• Status: Settled
• Allegations: “Clients allege unsuitable recommendations and mishandling of their accounts”
• Damage Amount Requested: $2,000,000.00
• Settlement Amount: $782,000.00
• Broker Comment: “The broker vehemently denies any and all claims made by the client. The client contacted the broker multiple times on a daily basis to discuss the accounts in question and sent the broker thousands of emails, many containing financial newsletters during the life of the account. The client conducted extensive research on all positions and would contact the broker to place several hundred unsolicited transactions during the life of the account, some of which were in penny stocks. The client is extremely knowledgeable and suitable for the activity in the account. We believe that through the process provided by FINRA, the broker will be vindicated.”

November 2012 Customer Dispute

• Status: Denied
• Allegations: “Unauthorized Trading”
• Damage Amount Requested: $24,377.92
• Broker Comment: “This is an unfounded complaint. Phone records prove that all trades were authorized. The client signed onto his account online to view the transactions as well. There were no complaints prior to the letter from his attorney. In addition this was an account that my partner handled. I never traded for Mr. Swetmon.”

March 2012 Customer Dispute

• Status: Settled
• Allegations: “Over use of margin”
• Damage Amount Requested: $21,378.00
• Settlement Amount: $21,378.00
• Broker Comment: This was a friend of the family who after being a client with Mr. Lerner for over 10 years verbally claimed his authorized trades were too heavily in margin. In order to avoid a expensive and lengthy arbitration Mr. Lerner settled the matter.

October 2010 Customer Dispute

• Status: Settled
• Allegations: “Failure to supervise”
• Damage Amount Requested: $1,000,000.00
• Settlement Amount: $275,000.00
• Broker Comment: “Case was settled to avoid the cost of arbitration.”

April 2010 Customer Dispute

• Status: Settled
• Allegations: “Customer alleges representative failed to follow investment objectives, resulting in substantial losses to portfolio value.”
• Damage Amount Requested: $179,066.00
• Settlement Amount: $275,000.00
• Broker Comment: “Case was settled to avoid the cost of arbitration.”

Contact Us Today

The Sonn Law Group is currently investigating allegations that Steve Luftschein committed misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.