Did you lose money investing with Kapil Maheshwari (CRD# 6358540)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Kapil Maheshwari. If you suffered losses investing with Kapil Maheshwari, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of May 24, 2020, Kapil Maheshwari’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
1 Regulatory Event(s)
UPDATE 1/13/2020: Kapil Maheshwari (CRD #6358540, Clark, New Jersey) January 13, 2020 – Maheshwari appealed an OHO decision to the NAC. Maheshwari was barred from association with any FINRA member in all capacities and ordered to pay disgorgement in the amount of $2,760, plus interest. The sanctions were based on the findings that Maheshwari misused confidential information obtained from his former member firm about a future corporate acquisition for trading purposes. The findings stated that Maheshwari’s team provided investment banking services for a publicly held technology company. In the course of his work, Maheshwari learned that the technology company wanted to buy another publicly held technology company. Shortly after his departure from his former firm, Maheshwari traded in the other technology company’s stock by purchasing shares in his personal account and in his wife’s account on the same day and at the same price. One week later, the original technology company announced the acquisition of the other technology company. Subsequently, Maheshwari attempted to sell all of the other technology company stock in both accounts. Maheshwari’s broker declined to process the trades and alerted his former firm which then initiated an investigation that led to a FINRA referral that resulted in the present action. When later questioned by his former firm about his trading, Maheshwari falsely told it that he never had any information related to whether the other technology company was engaging in acquisition talks. Ultimately, the other technology company acquisition was finalized and Maheshwari received cash for his shares at the higher acquisition price, netting him and his wife a total profit of $2,760. The sanctions are not in effect pending the review. (FINRA Case # 2017055608101)
Current and Previous Registrations
08/12/2014 – 09/22/2017 CREDIT SUISSE SECURITIES (USA) LLC (CRD#:816) NEW YORK, NY
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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