Aegis Broker Malcolm Segal from Pennsylvania/Florida Accused in Ponzi Scheme

MALCOLM SEGAL (CRD# 1723563) 69, of Langhorne, Pennsylvania, and Boynton Beach, Florida, was charged by the Securities and Exchange Commission (SEC) on July 1, 2015 with conducting a Ponzi scheme and an indictment was opened charging Segal with six counts of mail fraud, and three counts of wire fraud. Segal was permanently barred by FINRA. He was a financial advisor with Aegis Capital Corporation at the time of the alleged scheme.

According to the indictment, between July 2011 and July 2014, allegedly Segal sold CDs to his firm clients assuring them they were FDIC-insured. He also made claims regarding higher interest rates not available to the average investor--all lies. Segal purchased CDs for his clients but without the clients' knowledge or consent he sold the CDs and kept the proceeds.

Segal allegedly purchased the fraudulent CDs through J&M Financial and National CD Sales, controlled by Segal and existing in name only. Segal many times told his clients he was purchasing CDs, when in fact he never purchased the CDs. Segal used his clients’ money to pay his own personal expenses and to pay off other investors instead in his Ponzi scheme. The FBI reported that Segal allegedly stole a total of $1,885,067.10 from the victims for the CD scam, and stole approximately $1,218,183.60 from the brokerage accounts of three of his clients at Aegis.

Segal faces a maximum possible statutory sentence of 180 years in prison.

According to FINRA's BrokerCheck, MALCOLM SEGAL was previously registered with the following firms:

04/2011 - 07/2014 AEGIS CAPITAL CORP. (CRD# 15007) - NEW YORK, NY

01/1989 - 04/2011 CUMBERLAND BROKERAGE CORPORATION (CRD# 13409) - LANGHORNE, PA

MALCOLM SEGAL (CRD# 1723563) 69, of Langhorne, Pennsylvania, and Boynton Beach, Florida, was charged by the Securities and Exchange Commission (SEC) on July 1, 2015 with conducting a Ponzi scheme and an indictment was opened charging Segal with six counts of mail fraud, and three counts of wire fraud. Segal was permanently barred by FINRA. He was a financial advisor with Aegis Capital Corporation at the time of the alleged scheme. According to the indictment, between July 2011 and July 2014, allegedly Segal sold CDs to his firm clients assuring them they were FDIC-insured. He also made claims regarding higher interest rates not available to the average investor--all lies. Segal purchased CDs for his clients but without the clients' knowledge or consent he sold the CDs and kept the proceeds. Segal allegedly purchased the fraudulent CDs through J&M Financial and National CD Sales, controlled by Segal and existing in name only. Segal many times told his clients he was purchasing CDs, when in fact he never purchased the CDs. Segal used his clients’ money to pay his own personal expenses and to pay off other investors instead in his Ponzi scheme. The FBI reported that Segal allegedly stole a total of $1,885,067.10 from the victims for the CD scam, and stole approximately $1,218,183.60 from the brokerage accounts of three of his clients at Aegis. Segal faces a maximum possible statutory sentence of 180 years in prison. According to FINRA's BrokerCheck, MALCOLM SEGAL was previously registered with the following firms: 04/2011 - 07/2014 AEGIS CAPITAL CORP. (CRD# 15007) - NEW YORK, NY 01/1989 - 04/2011 CUMBERLAND BROKERAGE CORPORATION (CRD# 13409) - LANGHORNE, PA

If you sustained investment losses due to Malcolm Segal of Aegis Capital, in this or another Ponzi-like scheme, call Soreide Law Group for no cost consultation on how to potentially recover your losses at 888-760-6552. Soreide Law Group represents clients nationwide.