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Arkady Ginsburg Is the Subject of a FINRA Investigation Alleging Churning

Mar 28, 2022 Excessive Trading

Arkady Ginsburg (CRD #:5256747), a broker registered with Aegis Capital Corp, has been fined and suspended by FINRA, according to his BrokerCheck record, accessed on March 22, 2022. 

FINRA Allegations

On March 23, 2022, Arkady Ginsburg consented to FINRA findings that he engaged in excessive and unsuitable trading in the accounts of three customers.

FINRA determines excessive trading by measuring the turnover rate and the cost-to-equity ratio. Cost-to-equity ratios are the percentage by which an investment portfolio would need to grow to earn a profit after paying commissions and fees. A cost-to-equity ratio over 20% indicates excessive trading. 

  • Customer A allegedly suffered losses of $157,539 and had a cost-to-equity ratio of 48.68%
  • Customer B allegedly suffered losses of $509,863 and had a cost-to-equity ratio of 34.55% 
  • Customer C allegedly suffered losses of $19,238.39 and had a cost-to-equity ratio of 30.82%

In total, FINRA alleges that Arkady Ginsburg’s customers' lost $686,640.39 while the broker earned $113,591. 

As a result of the findings, Arkady Ginsburg consented to a six-month suspension and restitution payment of $113,591. In light of his inability to pay, FINRA did not impose a fine. You can read a copy o the disciplinary action here

What is Churning?

Churning is another term for excessive trading, which occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors. It is prohibited under FINRA Rule 2111, under the quantitative suitability requirements. This means that the number of trades must fit the customer's needs. 

Background Information

Arkady Ginsburg has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

He is a registered broker in 48 states.

Besides Aegis Capital Corp, Arkady Ginsburg has also worked with Rockwell Securities and S.W. Bach & Company (CRD#:43522).

Kurta Law Can Help

If you have worked with Arkady Ginsburg and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.