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Alan Appelbaum, Boca Raton Broker, Involved in $1.8 Million Customer Dispute Over Unsuitable Investment Recommendations

Alan Appelbaum (CRD#: 500336), a registered representative with Aegis Capital Corp. (CRD#: 15007) in Boca Raton, Florida, is currently involved in multiple pending customer disputes, mainly over unsuitable investment recommendations, according to his BrokerCheck record accessed on October 25, 2019. Throughout his 43-year career in the securities industry, Alan Appelbaum has a dozen disclosures, including one dating back to 1982.

Alan AppelbaumOne of Alan Appelbaum’s clients is currently suing him for $1.8 million, alleging that he made unsuitable investment recommendations between July 2015 and August 2018. The dispute, which was filed on November 30, 2018, is pending and will be heard before a FINRA arbitration panel unless the involved parties decide to mediate. The recent claim only adds to other pending claims in which Alan Appelbaum currently finds himself involved. Another client, who filed a complaint in August of 2015, is suing him for $200,000, alleging he recommended unsuitable investment products and engaged in churning, trading excessively in an account to generate large commissions for himself.

The State of New Hampshire has also come after Alan Appelbaum for operating in the State without the proper licensure. After Alan Appelbaum serviced eight brokerage accounts for New Hampshire residents without being properly registered as an investment advisor in New Hampshire, the New Hampshire Burau of Securities fined him $55,000 on July 5, 2006.

Around the same time that the State of New Hampshire was investigating Alan Appelbaum, a customer complained in the spring of 2006 that the broker’s mark-up on bonds was excessive. The matter was settled for $250,000. That was not the first time that Alan Appelbaum’s bond recommendations led to customer complaints. On October 15, 2001, a customer complained about the municipal bonds Alan Appelbaum had recommended. The matter was ultimately settled for 75,000. Just nine months later, on May 22, 2002, a client sued Alan Appelbaum for $136,238.18, complaining about the municipal bonds recommended to him. The matter was ultimately settled for $15,000. Then, before the ink had even tried on that settlement, Alan Appelbaum became  the subject of yet another complaint. Three months later, on August 28, 2002, a client complained that Alan Appelbaum’s “purchases of high yield bonds was [sic] contrary to his investment objectives.” The client originally requested $216,708.40 in damages; the matter was ultimately settled for $2,500.

While Alan Appelbaum has a history of settling disputes, he is also no stranger to FINRA arbitrations. On July 19, 2005, he was found liable for $45,722 in damages after a client alleged that he engaged in fraud, made misrepresentations, recommended unsuitable investments, and breached his fiduciary duty, among other allegations. A copy of the award letter can be viewed here.

Alan Appelbaum’s history of complaints dates back over 35 years. On July 3, 1991, the National Association of Securities Dealers (NASD), the precursor to the Financial Authority Regulatory Authority (FINRA), censured and fined Alan Appelbaum, alleging that a “respondent member, acting through Respondent Appelbaum effected transactions in non-exempt securities while failing to maintain its required minimum net capital.” NASD also alleged that Alan Appelbaum “failed to establish, maintain and enforce written supervisory procedure and such written supervisory procedures had various deficiencies,” and “failed to exercise adequate supervision over the financial and operational activities of respondent member,” among other allegations. Ten years earlier, on February 11, 1982, Alan Appelbaum became subject to a censure. According to the Broker Comment section on Alan Appelbaum’s BrokerCheck record, “J.B. Hanauer & Co., a firm with which Mr. Appelbaum was previously affiliated, was the subject of injunction proceedings and that firm was permanently enjoined for violating the anti-fraud and record keeping provisions of the federal securities laws as well as the rules of Municipal Securities Rule Making [sic] Board.”

Over his 43 years in the securities industry, Alan Appelbaum has worked for seven broker-dealers, the majority which have had their SEC registration status terminated. In addition to his current position at Aegis Capital Corp. (CRD#: 15007), he has also worked at:

  • Herbert J. Sims & Co. Inc. (CRD#: 3420) of Boca Raton, Florida
  • Ryan, Beck & Co., LLC (CRD#: 3248) of Florham Park, New Jersey – terminated by the SEC on November 30, 2007
  • Gruntal & Co., LLC (CRD#: 372) of New York, New York – terminated by the SEC on July 21, 2002
  • F. Best Securities, Inc. (CRD#: 14335) of Coral Springs, Florida – terminated by the SEC on September 20, 1999
  • Paine, Webber, Jackson & Curtis Inc. (CRD#: 8174)
  • B. Hanauer & Co. (CRD#: 6958) – terminated by the SEC on December 12, 2009

If Alan Appelbaum was your broker or you have questions about unsuitable investments, churning, or unauthorized transactions, don’t hesitate to speak up. Call (877) 238-4175 or email info@fkesq.com for your free case consultation with the securities attorneys of Fitapelli Kurta.

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