FINRA Suspends Keith M. Dagostino Two Years for Unsuitable Recommendations to Retired and Senior Investors at Aegis Capital

If you are a current or former client of Keith M. Dagostino and were recommended speculative or low-priced securities by him, you should know that FINRA has suspended Dagostino for 24 months following findings that he willfully violated Regulation BI’s Care Obligation by recommending speculative and low-priced securities to 10 retired and senior investors whose investment profiles called for capital preservation, causing over $1.8 million in losses.

Keith M. Dagostino (CRD# 2837860), formerly a General Securities Representative and General Securities Principal with Aegis Capital Corp. (CRD# 15007) in Melville, New York, is not currently registered with any FINRA member firm.

Findings

Without admitting or denying the findings, Dagostino consented to sanctions and to the entry of findings that he willfully violated the Care Obligation under Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 when he recommended that retired and senior investors purchase speculative and low-priced securities that were not in their best interests.

According to the AWC, from July 2020 through June 2023, Dagostino recommended that 10 customers, all of whom were retired or senior investors, purchase speculative low-priced securities from microcap issuers. According to the AWC, each such customer had a low risk tolerance and investment objectives of preserving capital and generating income for retirement. According to the AWC, Dagostino recommended that each customer purchase speculative low-priced securities in amounts that were between 35% and 94% of their account’s value. According to the AWC, Dagostino’s recommendations to these customers caused over $1.8 million in losses, which his member firm repaid when they realized the losses were the result of Dagostino’s recommendations.

According to the AWC, because Dagostino’s recommendations subjected these customers to a substantial risk of loss that was inconsistent with their investment profiles, Dagostino’s recommendations were not in these customers’ best interests, and Dagostino willfully violated Exchange Act Rule 15l-1(a)(1) and violated FINRA Rule 2010.

Settlement History

According to BrokerCheck, Dagostino’s record includes 19 settled customer disputes and 6 pending customer disputes. The settled disputes are largely concentrated at Aegis Capital Corp. and span a period consistent with the AWC findings.

According to BrokerCheck, one customer complaint received on May 7, 2024, alleging that Dagostino made unsuitable recommendations and engaged in account mismanagement, settled on September 18, 2024, for $1,461,600; Dagostino’s individual contribution to that settlement was $0.

According to BrokerCheck, a complaint received on January 26, 2024, in which claimants alleged unsuitability, breach of fiduciary duty, and fraud, settled on December 17, 2024, for $820,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on July 15, 2024, in which claimants alleged unsuitable investment strategy, settled on July 30, 2025, for $800,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on May 2, 2024, alleging unsuitable recommendations and account mismanagement, settled on September 18, 2024, for $538,400; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on August 15, 2023, alleging unsuitable investments, settled on October 18, 2024, for $500,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on August 22, 2024, in which claimants alleged unsuitable investment strategy and breach of fiduciary duty, with alleged damages of $1,000,000, settled on June 13, 2025, for $496,500; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on May 2, 2023, alleging unsuitable investments, settled on March 26, 2024, for $410,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on June 18, 2024, in which clients alleged overconcentrated investments, suitability issues, and poor performance, with alleged damages of $600,000, settled on January 29, 2025, for $409,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on June 6, 2023, covering the period July 2021 through May 2023 and alleging unsuitable investment recommendations, with alleged damages of $300,000, settled on February 5, 2024, for $325,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on April 5, 2024, alleging unsuitability, breach of fiduciary duty, negligence, breach of contract, and excessive trading involving structured notes, with alleged damages of $500,000, settled on February 27, 2025, for $225,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on August 7, 2023, covering the period 2017 to the present and alleging unsuitable investments, settled on August 5, 2024, for $246,382; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on February 11, 2025, alleging unsuitable investments, breach of contract, breach of fiduciary duty, and negligence, settled on December 16, 2025, for $150,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on March 6, 2023, covering August 2021 to the present and alleging poor performance and suitability issues, with alleged damages of $118,234.37, settled on April 3, 2023, for $90,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on November 3, 2023, covering February 2018 to the present and alleging poor performance, settled on December 14, 2023, for $60,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a complaint received on February 3, 2022, covering August 2018 to the present and alleging suitability violations, misrepresentation and omission of material facts, and breach of fiduciary duty in connection with a private placement, with alleged damages of $400,000, settled on March 10, 2023, for $35,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, an earlier complaint received on May 11, 2017, covering 2016 and alleging poor performance, with alleged damages of $170,000, settled on June 13, 2017, for $92,000; Dagostino’s individual contribution was $0.

According to BrokerCheck, a separate matter involving Dagostino’s prior registration with Stifel, Nicolaus and Company, Inc., in which claimants alleged breach of fiduciary duty, negligence, common law fraud, violations of Florida law, and unjust enrichment covering the period June 2010 through January 2013, with alleged damages of $725,000, settled on September 30, 2014, for $220,000; according to BrokerCheck, Dagostino’s individual contribution to that settlement was $110,000.

According to BrokerCheck, as of the date of this post, Dagostino has 6 pending customer disputes, including a complaint filed January 19, 2026, alleging unsuitable investments, breach of contract, and breach of fiduciary duty; a complaint filed October 16, 2025, alleging breach of fiduciary duty, breach of contract, and negligence, with alleged damages of $1,000,000; and a complaint filed March 28, 2025, with alleged damages of $400,000.

A settlement isn’t an admission of wrongdoing. FINRA is clear on that, and so are we. Firms and brokers settle disputes for all kinds of reasons: litigation costs, customer relationships, business optics. We’re not saying the settlement proves anything. What we are saying is that the record exists, it’s public, and if you had a similar experience with Keith M. Dagostino, you deserve to know about it.

Background

Regulation Best Interest, which took effect on June 30, 2020, requires brokers to act in a retail customer’s best interest when making a recommendation of any securities transaction or investment strategy. The Care Obligation under Reg BI requires brokers to exercise reasonable diligence, care, and skill and to have a reasonable basis to believe that a recommendation is in the best interest of a particular customer based on that customer’s investment profile, including risk tolerance, investment objectives, investment time horizon, and liquidity needs.

Speculative low-priced securities, including securities issued by microcap companies, carry risks that are fundamentally mismatched with a conservative investment profile. Microcap stocks are often thinly traded, lack the reporting requirements of larger companies, and can be subject to significant price volatility. Recommending that a retired investor put 35% to 94% of their account into such positions, when that investor has expressly sought capital preservation and income, is the kind of mismatch Reg BI was designed to prohibit.

A violation of Reg BI’s Care Obligation also constitutes a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.

In California, if the customer was age 65 or older at the time of the conduct, elder financial abuse laws may apply, opening the door to treble (triple) damages and attorney fee recovery.

FINRA Rule 12206 governs eligibility for arbitration claims. Investors considering a claim should consult with a securities arbitration attorney to evaluate whether their situation falls within the applicable timeframe.

Warning Signs

If you received investment recommendations from a broker at a brokerage firm and are concerned about whether those recommendations were in your best interest, consider the following:

• Were you a retired or senior investor with conservative investment objectives, such as capital preservation or income generation, and was a significant portion of your account placed into speculative or low-priced securities?
• Did a single security or type of security represent 35% or more of your account’s value, and was that concentration inconsistent with your stated risk tolerance?
• Did you experience substantial losses in accounts you were told were being managed appropriately for your retirement goals?
• Were you invested in microcap stocks, penny stocks, or other thinly traded securities without a clear explanation of the risks involved?
• Do your account statements reflect a pattern of recommended securities that consistently underperformed or lost significant value over time?

If any of these patterns apply to your account, a free consultation with a securities law attorney can help you understand whether you have a potential claim for damages.

Sanctions

According to the AWC, Dagostino was sanctioned with a 24-month suspension from associating with any FINRA member in all capacities and a $25,000 fine. According to BrokerCheck, the suspension runs from January 5, 2026, through January 4, 2028. According to BrokerCheck, the $25,000 fine is levied entirely against Dagostino individually.

According to BrokerCheck, Dagostino was registered with Aegis Capital Corp. from October 2014 through November 2023, when the firm filed a Form U5 disclosing that Dagostino had voluntarily resigned. According to BrokerCheck, he was subsequently registered with EF Hutton LLC from October 2023 through October 2024 and is not currently registered.

Steps to Take Right Now

1. Gather your account statements, trade confirmations, and any correspondence with your broker or firm, including emails, texts, and written materials about the investments.
2. Look up your broker on FINRA BrokerCheck at brokercheck.finra.org to review their full disclosure record.
3. Contact a securities arbitration attorney for a consultation to evaluate your options.

Rosenberger + Kawabata represents retail investors in FINRA arbitration proceedings involving unsuitable investment recommendations, including recommendations of speculative and low-priced securities to conservative and senior investors. If you invested with Keith M. Dagostino at Aegis Capital Corp. and believe you were placed in investments inconsistent with your risk profile, contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.

Sources

The information in this post comes from FINRA’s public records and BrokerCheck database. You can view the full detailed report (CRD# 2837860) here.

You can view the full February 2026 FINRA disciplinary actions report here.