New York Financial Advisor Kaival Patel Convicted of Fraud and Money Laundering
Kaival Patel, a financial advisor from West New York, New Jersey, was reportedly sentenced to 41 months in prison for his role in a multimillion-dollar health care fraud conspiracy on December 18th, 2024, according to a press release. Patel was reportedly convicted of multiple counts of fraud and money laundering for allegedly orchestrating a scheme that exploited health insurance plans for New Jersey state and local government employees.
Through his company, ABC Healthy Living LLC, Patel reportedly marketed medically unnecessary compounded medications and allegedly worked with a family member, a medical doctor, to authorize fraudulent prescriptions. He also purportedly conspired with corrections officers and a compounding pharmacist to inflate medication costs and maximize illicit profits.
As part of the alleged scheme, Patel reportedly received commissions on fraudulent prescriptions and laundered the proceeds. Nearly 50 individuals have been convicted or pleaded guilty in connection with the conspiracy. In addition to his prison term, Patel was sentenced to three years of supervised release and ordered to pay $4.72 million in restitution.
FINRA Bars Kaival Patel from Working as a Broker
Patel was reportedly barred from working as a broker in May 2022 after his employer, Stifel Nicolaus filed a Form U5 disclosing that it had discharged Patel following a loss of confidence relating to issues stemming from his being named in an indictment filed in the U.S. District Court for the District of New Jersey.
FINRA BrokerCheck: Kaival Patel
According to his FINRA BrokerCheck Report, Kaival Patel was reportedly registered with the following firms during his career, among others.
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
07/09/2018 – 02/04/2022 STIFEL, NICOLAUS & COMPANY, INCORPORATED (CRD#:793) HACKENSACK, NJ
08/15/2011 – 07/12/2018 WELLS FARGO CLEARING SERVICES, LLC (CRD#:19616) SHORT HILLS, NJ
07/22/2010 – 06/28/2011 MORGAN STANLEY SMITH BARNEY (CRD#:149777) FLORHAM PARK, NJ
How to Recover your Investment Losses
A brokerage firm’s duty to supervise its advisors is a fundamental obligation under federal securities laws and FINRA rules. This duty is designed to protect investors.
If an advisor engages in misconduct, the firm can be held liable if it failed to detect or prevent the wrongdoing due to inadequate supervision. Firms that fail to supervise their advisors, can be held responsible for investment losses in a Financial Industry Regulatory Authority (FINRA) lawsuit.
Free Consultation
If you have suffered investment losses with Kaival Patel and Stifel Nicolaus and Co., the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We represent investors in all 50 states including New Jersey.
National Securities Attorneys
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.
Our attorneys have recovered millions of dollars from many broker-dealers across the country.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
Last modified: February 20, 2025
