Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that FINRA’s Department of Enforcement has recently brought disciplinary proceedings against broker Kishan Parikh (CRD # 5506554) for alleged unsuitable recommendations and excessive trading (churning) in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Parikh.
Registration Background for Kishan Parikh
Mr. Parikh first became registered in the securities industry in 2008. He is currently not registered with a member firm. He was most recently registered with New York, NY based Aegis Capital Corp. (CRD # 15007) from May 2012 to April 2019. His prior registrations include Max International Broker/Dealer Corp (CRD # 46039) from April 2008 to May 2012.
FINRA’s Allegations Against Kishan Parikh
On March 17, 2021, FINRA’s Department of Enforcement filed a Complaint against Mr. Parikh in which the following allegations are made:
- “[Mr.] Parikh, while associated with FINRA member Aegis Capital Corp. (“Aegis” or the “Firm”), made unsuitable recommendations and excessively traded the accounts of five of his customers, Customers A, B, C, D and E (collectively, the “Customers”) from August 2014 through November 2016 (the “Relevant Period”)”;
- “[Mr.] Parikh controlled the trading in the Customers’ accounts and, during the Relevant Period, executed 442 trades with a total principal value of approximately $31.1 million”;
- “[Mr.] Parikh’s excessive and unsuitable trading in the Customers’ accounts 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%, and caused combined losses of more than $33,000”;
- “[Mr.] Parikh’s trading generated gross sales credits and commissions of $179,112, of which [Mr.] Parikh received at least $89,000”;
- “[Mr.] Parikh executed 53 trades with a total principal value of approximately $4.2 million in the accounts of Customers C and D without their prior authorization”; and
- By virtue of his actions, Mr. Parikh violated FINRA Rule 2111, regarding suitability and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
Kishan Parikh Has A History of Customer Complaints
In addition to the allegations of unsuitable recommendations and excessive trading in FINRA’s disciplinary proceedings against Mr. Parikh, FINRA BrokerCheck for Mr. Parikh reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On May 11, 2017, a customer-initiated arbitration was filed naming Mr. Parikh as a respondent regarding alleged actions that occurred while he was associated with Aegis Capital Corp. The customer alleged excessive trading (“churning”) and unsuitable investment recommendations. The customer further alleged damages in the amount of $350,000.00. On September 18, 2018, the arbitration was settled in the amount of $499,999.00.
- On February 2, 2021, a customer-initiated arbitration was filed naming Mr. Parikh as a respondent regarding alleged actions that occurred while he was associated with Aegis Capital Corp. The customer alleged unsuitable investment recommendations. The customer did not specify a dollar amount for the alleged damages. As of the date of this posting, the arbitration is currently pending.
If you or someone you know has or had a brokerage account with Kishan Parikh and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.