Financial Abuse of Senior Citizens

A recent FINRA enforcement action serves as a stark reminder that retired and elderly investors remain prime targets for unsuitable and risky investment schemes—often with devastating financial consequences.

This week, FINRA announced sanctions against Keith M. D’Agostino, a former broker at Aegis Capital Corp., fining him $25,000 and suspending him for two years for allegedly steering retirees into high-risk penny stocks that were wholly inconsistent with their stated investment goals. According to regulators, the misconduct resulted in more than $1.8 million in losses across 10 customer accounts. FINRA Disciplinary Actions Online | FINRA.org

Retirees deserve investment advice that prioritizes safety, transparency, and long-term stability—not speculation that benefits brokers at the expense of clients’ financial security.

FINRA’s action sends an important message, but enforcement alone does not make harmed investors whole. Losses caused by unsuitable recommendations may still be recoverable through FINRA arbitration, even years after the investments were made.

Red Flags Checklist for Investors and Families

If you or a loved one recognize any of the following warning signs, it may indicate unsuitable or abusive investment practices:

• Penny stocks or microcap securities recommended for retirement accounts
• A portfolio heavily concentrated in one type of investment or sector
• Claims that risky investments are “safe,” “temporary,” or “about to take off”
• Investments that are hard to sell or thinly traded
• Losses that occurred despite being told your goal was income or capital preservation
• Frequent trading or recommendations that generate high commissions
• Pressure to act quickly or discouragement from getting a second opinion
• A broker who dismisses concerns or avoids clear explanations
• A broker with multiple customer complaints or disciplinary actions on BrokerCheck

A Call for Vigilance and Accountability

No investor—especially a retiree—should discover too late that their life savings were treated like speculative capital.

The Forman Law Firm, P.C. has a proven history of successful representation of clients against brokerage firms and investment advisors who have violated rules or responsibilities. If you believe you or a family member had a broker place your funds into investments that didn’t match your risk tolerance or retirement goals please contact our firm via our website www.formanlawfirm.com  or call us at 512-306-8188.