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Daniel O’Neill: FINRA Alleges Excessive Trading and Churning

Sep 20, 2021 Excessive Trading

Daniel O’Neill (CRD #: 1358245), a broker previously registered with Aegis Capital in Melville, New York, is the subject of a FINRA investigation, according to his BrokerCheck record, accessed on September 7, 2021. FINRA alleges that Daniel O’Neill executed excessive trades in order to generate commissions and fees for himself.

On July 29, 2021, FINRA named Daniel O’Neill in a complaint that alleges he executed an excessive number of trades that resulted in an annualized cost-to-equity ratio of 63.7% -- a cost-to-equity ratio of over 20% indicates churning. This excessive trading allegedly resulted in losses of $147,411. Daniel O’Neill’s trading generated sales credit and commissions of $110,446, of which Daniel O’Neill received $66,000.

FINRA also alleges that:

  • Daniel O’Neill placed 183 of the 456 trades without authorization, even though they were not discretionary accounts.
  • Those trades were allegedly unsuitable investments.
  • Daniel O’Neill moved the portfolio from mutual funds to almost exclusively equities. (Brokers should always be sure to diversify their investors’ portfolios.)

According to FINRA, Daniel O’Neill made unsuitable use of a margin account. Margin allows brokers to trade using borrowed money – which increases the chance that the investor will lose money. Using margin also increases the opportunity for the broker to earn commissions. FINRA alleges the investor had to pay $14,508 in margin interest charges.

During the relevant period, Daniel O’Neill became the subject of two tax liens, totaling $86,000.

FINRA seeks to have Daniel O’Neill return his ill-gotten gains to the investor.

You can read a copy of the FINRA complaint here.

Employment Termination

On July 29, 2021, Aegis Capital Corp fired Daniel O’Neil. The firm alleged that Daniel O’Neill failed to keep the firm apprised of the status of the pending FINRA investigation.

Investor Dispute

There is another investor dispute on Daniel O’Neill’s record. On February 3, 2021, an investor alleged that Daniel O’Neill recommended unsuitable investments.

Financial Disclosures

Today, Daniel O’Neill has a total of five tax liens on his record, which come to $110,007.81. He is also the subject of a civil lien for $30,000.

Daniel O’Neill Background Information

Daniel O’Neill has passed the following exams:

  • Series 63 Uniform Securities Agent State Law Examination
  • Securities Industry Essentials Examination
  • Series 7 General Securities Representative Examination

Daniel O’Neill has worked with the following firms:

  • Aegis Capital Corp (CRD #: 15007)
  • Ladenburg Thalmann & Co. (CRD #: 505)
  • Maxim Group (CRD #: 120708)
  • Wachovia Securities (CRD #: 19616)
  • Oppenheimer (CRD #: 249)
  • First Montauk Securities (CRD #: 13755)
  • Janney Montgomery (CRD #: 463)
  • First Albany Corporation (CRD #: 298)
  • Bear, Stearns & Co. (CRD #: 79)
  • Drexel Burnham Lambert (CRD #: 7323)
  • Oppenheimer & Co. (CRD #: 630)
  • F. Rothschild & Co. (CRD #: 501)

Kurta Law Can Help

If you worked with Daniel O’Neill and you have concerns about your investments, contact Kurta Law today. Call 877-600-0098 or email info@kurtalawfirm.com.