FINRA Complaint Alleges Broker Kishan Parikh made Unsuitable Investments, Excessive Trades
According to public records, the Financial Industry Regulatory Authority (FINRA) has filed a complaint against financial advisor Kishan Parikh (also known as Sean Parikh, CRD #5506554) for allegations of excessive trading and unsuitable recommendations.
FINRA alleges that Parikh, while associated with FINRA member Aegis Capital Corp. made unsuitable recommendations and excessively traded the accounts of five of his customers, from August 2014 through November 2016. Parikh, who purportedly controlled the trading in the Customers’ accounts, allegedly executed 442 trades with a total principal value of approximately $31.1 million.
Parikh’s alleged excessive and unsuitable trading resulted in annualized turnover rates ranging from 10.9 to 199.8 and annualized cost-to-equity ratios (or break-even points) ranging from 27.5% to 59.7%, according to FINRA. Consequently these trades reportedly caused combined losses of more than $33,000. Apparently at the same time, Parikh’s trading purportedly generated gross sales credits and commissions of $179,112, of which Parikh received at least $89,000.
By allegedly engaging in excessive and unsuitable trading in the Customers’ accounts, Parikh violated FINRA Rules 2111 and 2010, according to the regulator.
*Update* August 1, 2021 Sean Parikh Suspended from Securities Industry
According to FINRA’s Default decision rendered July 7, 2021, Sean Parikh was suspended for 18 months from the securities industry. The sanctions were based on the findings that Parikh engaged in unsuitable and excessive trading. He was also reportedly fined $10,000.00 and ordered to pay restitution in the amount of $40,919.00.
Sean Parikh’s broker report indicates that he was registered with Aegis Capital Corporation in New York, NY from 2012 until April 2019.
Parikh reportedly has two customer complaints filed against him. He has one settled complaint in May 2017 for allegations of unsuitable investments and excessive trading, according to his broker profile. The damage amount requested was $499,999 and the lawsuit reportedly settled for $350,000.
More recently, a customer filed a complaint in February 2021, for allegations of unsuitable investments. The suit is still pending, according to Parikh’s broker profile.
Filing a Complaint against your Brokerage Firm
The White Law Group is investigating potential securities fraud claims involving Kishan (Sean) Parikh and the liability his former employers may have for failure to properly supervise him.
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as making unsuitable trades, or excessively trading, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you are concerned about investments with Kishan Parikh and Aegis Capital Corporation, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
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