Alan Appelbaum: SEC Files Charges Against Boca Raton Advisor

Former Aegis Capital financial advisor Alan Appelbaum (CRD# 500336) allegedly recommended unsuitable structured products to his customers, according to Securities and Exchange Commission charges. Financial Industry Regulatory Authority and SEC records show that the former Boca Raton broker has received multiple customer complaints and that the SEC is seeking a jury trial against him. 

According to an SEC litigation release published in July 2022, the SEC has filed a complaint in federal court alleging that Mr. Appelbaum recommended that seven customers invest in unsuitable variable interest rate structured products, or VSRPs. The customers in question “had a ‘moderate’ risk tolerance, were unwilling to lose their entire invested principal, and typically had investment time horizons that were inconsistent with the VRSP maturity dates,” according to the SEC, which alleges further that Mr. Applebaum made false and misleading statements regarding the products and executed unauthorized transactions. The complaint charges Mr. Applebaum with violations of the Securities Act and the Exchange Act, seeking a jury trial against him.

Mr. Applebaum’s FINRA BrokerCheck report discloses multiple investor complaints against him. The most recent, filed in May 2021, alleged that he recommended unsuitable structured products, reaching a settlement in February 2022 of $280,000. A similar complaint filed in 2019 alleged that he recommended unsuitable structured products and made unauthorized trades, reaching a settlement in 2021 of $1.65 million. A 2015 complaint alleged that as a representative of Herbert J. Sims & Company, he engaged in “unsuitable trading in proprietary investments and structured products,” reaching a settlement of $20,000. Another 2015 complaint alleged that he recommended unsuitable investments and engaged in churning while at Herbert J. Sims, reaching a settlement of $35,000.

In May 2021 Mr. Applebaum resigned from his position at Aegis Capital, where, according to the SEC’s litigation release, he had been a Managing Director. According to a disclosure on his BrokerCheck report, he was “permitted to resign” in relation to allegations he failed to follow firm procedures and engaged in unauthorized discretionary trading. 

According to the Financial Industry Regulatory Authority, Alan Applebaum holds 45 years of securities industry experience. Most recently based in Boca Raton, Florida, he was a representative of Aegis Capital from 2015 until 2021. His past registrations include Herbert J. Sims & Company, Ryan Beck & Company, Gruntal & Company, A.F. Best Securities, Paine Webber Jackson & Curtis, and J.B. Hanauer & Company. His credentials include the passage of eight securities industry qualifying examinations: the General Securities Principal Examination, or Series 24; the Municipal Securities Principal Examination, or Series 53; the NYSE Branch Manager Examination, or Series 12; the Registered Options Principal Examination, or Series 4; the Financial and Operations Principal Examination, or Series 27; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is not currently registered as a broker or an investment advisor. (Information current as of August 2, 2022.)

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