Keith Dagostino, a broker since 1997, faces a storm of customer disputes. Currently with EF Hutton in Woodbury, NY, Dagostino’s career spans several firms. But his record isn’t spotless.
Eighteen disclosures, all customer disputes, cloud his professional history. Fifteen of these popped up since March 2023, with seven still pending. These claims aren’t small potatoes.
They involve serious allegations like unsuitability, breach of duty, and fraud. Some disputes pack a punch, with one seeking the return of a cool million bucks tied to a no-show IPO.
Another claims half a million in damages from bad investment picks. Haselkorn & Thibaut has stepped in, representing investors with beef against Aegis Capital over Dagostino-managed accounts.
They’re not messing around, working on a “no win, no fee” basis. This case shines a light on the darker side of investing. It shows how important it is to keep tabs on your broker.
The next sections will dig deeper into Dagostino’s tangled web of disputes. Buckle up, it’s quite a ride.
Key Takeaways
Table of Contents
- Keith Dagostino, a broker with EF Hutton, faces 18 customer disputes since March 2023, with 15 filed recently.
- Dagostino’s career spans 26 years in the securities industry, working for firms like Aegis Capital Corp. and Oppenheimer & Co. Inc.
- Three disputes settled in 2024 for a total of $2,017,500, with claims of unsuitability and account mismanagement.
- Haselkorn & Thibaut represents investors in cases against Dagostino, often working on a contingent fee basis.
- Unsuitable investments, like pot stocks for retirees or complex options for novices, are at the heart of many complaints against Dagostino.
Background of Keith Dagostino
Broker registration and employment history
Keith Dagostino’s career in the securities industry spans several firms. He currently works as a broker for EF Hutton in Woodbury, NY. His past jobs include stints at Aegis Capital Corp.
in Melville, NY, and Oppenheimer & Co. Inc., also in Melville. Dagostino also spent time at Stifel, Nicolaus & Company, Incorporated in Oyster Bay, NY.
A broker’s employment history can offer insights into their experience and track record.
These moves between firms are common in the financial world. Each company has its own culture and approach to investing. Brokers often switch firms to find better opportunities or align with their preferred style of work.
Length of time in the securities industry
Keith Dagostino has been a fixture in the securities industry for over two decades. He first stepped into this world back in 1997, marking the start of a long career in finance. That’s a whopping 26 years of experience under his belt.
During this time, Dagostino has seen the ups and downs of the market, weathered financial storms, and watched the industry evolve.
His lengthy stint in securities raises some eyebrows, given the customer disputes tied to his name. You’d think someone with so much time in the field would know the ropes inside out.
But as we’ll see next, even seasoned pros can find themselves in hot water. Let’s dive into the customer disputes that have put Dagostino in the spotlight.
Customer Disputes Involving Keith Dagostino
Keith Dagostino’s career has hit some bumps. Several clients have filed complaints against him, raising eyebrows in the finance world.
Number of disclosures and nature of disputes
Keith Dagostino’s record shows a high number of customer disputes. Let’s break down the numbers and types of complaints:
| Disclosure Type | Number | Nature of Disputes |
|---|---|---|
| Total Disclosures | 18 | All customer disputes |
| Recent Filings | 15 | Filed since March 6, 2023 |
| Pending Disputes | 7 | Awaiting resolution |
| August 2024 Filings | 4 | 3 allege unsuitability and breach of duty 1 requests return of $1 million IPO investment |
These numbers paint a picture of ongoing issues. The spike in recent filings is notable. It suggests a pattern of behavior that’s raising red flags. The pending disputes leave room for more developments. The nature of these complaints points to serious allegations about Dagostino’s practices.
Details of specific disputes and their current status
Moving from the number of disclosures, let’s dive into the specifics of Keith Dagostino’s disputes. Three cases stand out due to their recent settlements. These disputes, filed in May and July 2024, resulted in a whopping $2,017,500 in total damages paid out.
That’s a big chunk of change!
But the story doesn’t end there. Two more disputes are still up in the air. One, filed in April 2024, claims $500,000 in damages. Another from January 2024 is also pending. An older case from August 2023 alleges unsuitable investments.
The earliest dispute on record dates back to March 2023. It asked for $118,234.37 and settled for $90,000. These cases paint a picture of ongoing issues with Dagostino’s investment practices.
Unsuitable investments are like ill-fitting shoes – they might look good, but they’ll hurt you in the long run.
Legal Representation and Settlements
Investors who’ve lost money often turn to legal pros for help. Haselkorn & Thibaut has stepped up to bat for folks tangled up with Keith Dagostino.
Involvement of Haselkorn & Thibaut in representing investors
Haselkorn & Thibaut champions investors who’ve been wronged. They’re the preferred choice for individuals with complaints against Aegis Capital, particularly those connected to Keith Dagostino.
These legal experts specialize in investment fraud cases. They have attorneys licensed in New York and Florida, prepared to advocate for individual investors.
Here’s an important point: Haselkorn & Thibaut frequently operates on a contingent fee basis. This means clients don’t pay unless the firm wins their case. It’s an advantageous arrangement for investors who have already suffered financial losses.
If you have concerns about your accounts, contact them at 1-888-885-7162 . They’re ready to listen and assist you in determining your best course of action.
Settlement details of previous disputes
Keith Dagostino faced several customer disputes in recent years. Let’s look at the details of these settlements:
- Three disputes settled in 2024:
- All involved claims of unsuitability and account mismanagement
- Total settlements reached $2,017,500
- Shows a pattern of significant payouts to customers
- Earliest dispute filed on March 6, 2023:
- Resulted in a $90,000 settlement
- Smaller amount compared to later disputes
- Suggests potential escalation in customer complaints over time
- Pending customer dispute:
- Seeks $500,000 in damages
- Not yet settled, indicating ongoing legal challenges
- Adds to the total potential financial impact on Dagostino
- Dispute related to an IPO investment:
- Customer requested return of $1 million
- Investment tied to an IPO that didn’t happen
- Highlights risks associated with speculative investments
- Settlement amounts vary widely:
- Range from $90,000 to over $1 million
- Reflects different levels of alleged misconduct or investor losses
- May depend on strength of evidence in each case
These settlements raise questions about the allegations against Dagostino. Let’s explore the nature of these claims in more detail.
Understanding the Allegations
Keith Dagostino faces serious claims about his investment practices. Let’s break down what these allegations mean and how they might affect investors.
Explanation of the allegations against Dagostino
Keith Dagostino faces serious claims from investors. They say he broke rules and didn’t act in their best interests. Some people allege he suggested investments that didn’t fit their needs or goals.
This is called “unsuitability” in finance. It’s a major violation for brokers.
One investor wants their $1 million back. They claim Dagostino made significant errors. Two other cases are still ongoing. These investors say Dagostino wasn’t honest and made poor choices with their money.
They accuse him of fraud and breaking their trust. These are serious charges in finance. Brokers must always put their clients first, not their own wallets.
Definition of “unsuitability” in the context of securities
Shifting focus from the allegations against Dagostino, let’s explore the concept of “unsuitability” in stock and bond investments. Unsuitability occurs when a broker recommends investments that don’t align with a client’s needs or goals.
It’s comparable to offering a sports car to someone seeking a dependable family vehicle. In finance, this mismatch can result in significant issues.
Brokers are required to understand their clients’ financial circumstances, risk tolerance, and investment objectives. They shouldn’t promote high-risk options to individuals seeking consistent income.
For instance, recommending penny stocks to a retiree needing stable cash flow would be considered unsuitable. The regulations are explicit: investments must match the client’s profile.
If they fail to do so, the broker may be violating their obligation to prioritize the client’s interests.
Examples of unsuitable investments
Unsuitable investments can wreck a client’s financial future. Here are some examples of investments that often don’t match up with an investor’s goals or risk tolerance:
- Pot stocks for retirees: These volatile cannabis industry stocks are too risky for most people living on fixed incomes.
- Real Estate Investment Trusts (REITs) for conservative investors: While REITs can provide income, they’re often illiquid and carry market risks that may not suit cautious clients.
- High-yield “junk” bonds for low-risk portfolios: These bonds offer higher returns but come with a much greater chance of default.
- Penny stocks for inexperienced investors: These cheap, speculative stocks are prone to manipulation and sudden price swings.
- Complex options strategies for novice traders: Options can be useful tools, but they require deep market knowledge and can lead to big losses if misused.
- Hedge funds for small-time investors: These alternative investments often have high fees, lock-up periods, and strategies that may be hard to grasp.
- GWG Holdings L-Bonds for individual investors: These bonds are meant for big institutions, not everyday folks looking to grow their nest egg.
- Leveraged ETFs for long-term investors: These funds use debt to amplify returns, but they can also magnify losses and don’t work well for buy-and-hold strategies.
Conclusion
Keith Dagostino’s case highlights the dangers in investing. Several conflicts signal concerns about his methods. Investors should remain watchful and get assistance if they think something is wrong.
Law firms such as Haselkorn & Thibaut provide support for people who have suffered financial losses. Safeguarding your financial future is crucial.
