FINRA

Respondent Dlouhy failed to respond to FINRA request for information.

letter

Bar (Permanent)

All Capacities

Indefinite

3/14/2016

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated December 10, 2015 and January 4, 2016, respectively, on March 14, 2016, Dlouhy is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity. Associated case number is FINRA case #20140435477

UNSUITABILITY, DECREASE IN ACCOUNT VALUE

$7,453.88

ALLEGATIONS INCLUDE EXCESSIVE TRADING, UNSUITABILITY AND RR BORROWED FUNDS FROM CLIENT.

$5,000.00

$65,000.00

CLAIMANTS ALLEGE A VARIETY OF SALES PRACTICE VIOLATIONS, INCLUDING UNSUITABILITY, UNAUTHORIZED TRADING, MISREPRESENTATIONS, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT AND VIOLATIONS OF STATE SECURITIES LAWS IN CONNECTION WITH CLAIMANTS' INVESTMENTS IN LEVERAGED ETFS

$104,000.00

$37,500.00

Previous drp entered details in section 12 through 16 in error. Current firm is not named.

UNSUITABILITY, LOSS OF ACCOUNT VALUE, CHURNING, PERSONALLY BORROWED FROM CLIENT LOSS OF PRINCIPAL BEGAN WHILE AT AEGIS CAPITAL DURING EMPLOYMENT PERIOD 03/2010-07/2012. ACCOUNT VALUE CONTINUED TO DECLINE TO PRESENT. BORROWING FROM CLIENT OCCURRED DURING EMPLOYEMENT WITH AEGIS.

$90,000.00

$85,000.00

THIS WAS A WRITTEN COMPLAINT. THERE WAS NO CHURNING. THERE WAS AN EROSION OF PRINCIPAL OVER TIME. SETTLEMENT PAYMENTS ARE TO BE MADED IN 12 EQUAL MONTHLY INSTALLMENTS.

CLAIMANTS ALLEGE A VARIETY OF SALES PRACTICE VIOLATIONS, INCLUDING CHURNING, UNSUITABILITY, BREACH OF CONTRACT, NEGLIGENCE, BREACH OF FIDUCIARY DUTY, SECURITIES FRAUD AND COMMON LAW FRAUD, IN CONNECTION WITH CLAIMANTS' INVESTMENTS IN LEVERAGED ETFS.

$1,179,634.00

$290,000.00

CLIENT'S CLAIM OF LOSS IS NEARLY 3X GREATER THAN THE MONEY THEY INVESTED. CLIENTS WERE AWARE OF INVESTMENT RISK AND THERE ARE PHONE CALLS AND SUPPORTING SIGNED DOCUMENTATION

$100,814.68

Tax

I AM WORKING WITH MY ACCOUNTANT TO QUESTION THE VALIDITY AND TO RESOLVE THIS.

CUSTOMER ALLEDGED THAT F.A. RECOMMENDED INVESTMENTS CHARACTERIZED AS LOW RISK BUT HIGH REWARD BUT INVESTMENTS MUST HAVE BEEN HIGHLY RISKY BECAUSE ALL MONEY IN 401K ACCOUNTS WAS LOST. ALSO, F.A. DID NOT ADVISE THAT MONEY WOULD BE LEAVING THE 401K ACCOUNTS AND OF THE TAX IMPLICATION. NO TIME PERIOD SPECIFIED BUT APPARENTLY PRIOR TO 2009.

$115,000.00

ALLEGED EXCESSIVE INVESTMENT ACTIVITY DECEMBER 1999 THROUGH JUNE 2001.

$683,172.00

$135,000.00

CLAIMAINT JOINED IN THE STATEMENT OF CLAIM PREVIOUSLY FILED BY HER SISTER.

THE CUSTOMER ALLEGED MISREPRESENTATION, UNSUITABILITY, NEGLIGENCE, AND BREACH OF FIDUCIARY DUTY. THE CUSTOMER ALLEGES COMPENSATORY DAMAGES OF APPROXIMATELY $44,000.00.

$44,000.00

$14,900.00

I WAS NOT EVER THE BROKER OF RECORD UNTIL THE VERY END OF THE RELATIONSHIP. THE CLIENT BOUGHT PENNY STOCKS ON HIS OWN AND LOST MONEY. I BELIEVE IT WAS SETTLED TO AVOID COST OF LITIGATION.