Eyal Farag Allegedly Recommended an Unsuitable Investment

Eyal Farag (CRD #: 3072211), a broker previously registered with Aegis Capital Corp, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on September 27, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Allegations 

On July 24, 2024, an investor alleged that Eyal Farag recommended unsuitable investments and breached his fiduciary duty. 

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC. RIAs are fiduciaries, and fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Background Information 

Eyal Farag has passed the following exams: 

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

During his 24 years of experience, he has registered with 11 firms. These are the five most recent: 

• Aegis Capital Corp (CRD #: 15007) 
• National Securities Corporation (CRD #: 7569) 
• Westrock Advisors (CRD #: 114338) 
• GIT Securities Corporation (CRD #: 103735) 
• Berry-Shino Securities (CRD #: 38098) 

Kurta Law Can Help 

If you worked with Eyal Farag and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.