FINRA Charges Kishan Parikh, Former Ageis Capital Corp Broker, With Allegations of Excessive Trading and Unsuitable Recommendations
The Financial Industry Regulatory Authority (FINRA) has filed a disciplinary complaint against former registered broker Kishan Parikh, also known as Sean Parikh. FINRA’s complaint alleges that while employed by Aegis Capital, Parikh made unsuitable recommendations and traded the accounts of five customers excessively during a period of time between August 2014 through 2016.
On March 17, 2021, FINRA’s Department of Enforcement filed their complaint against Parikh alleging excessive trading and unauthorized trading. The FINRA complaint includes the following specific allegations:
- Parikh controlled trading in his customers’ accounts and executed almost 450 trades with a combined value of approximately $31.1 million
- The excessive and unsuitable trading in the accounts resulted in annual turnover rates ranging from 10.9 to 199.8 and annual break-even points ranging from 27.5% to 59.7% as a result, Parikh’s customers’ combined losses total more than $33,000
- Parikh’s trading generated commissions of $179,112, he received at least $89,000 of that
- The execution of over 50 trades with a total value of almost $4.2 million in the accounts without prior customer authorization
Excessive trading, or churning, is defined as when a broker takes part in trading in excess of a client or investor’s goals for the purpose of generating commissions.
Unauthorized trades are trades that the broker makes for a customer without permission or authorization.
Kishan Parikh had ten years of experience with two firms; he has been associated with both Max International Broker/Dealer Corp. and Aegis Capital Corp. In addition to FINRA’s discipline, Mr. Parikh has been the subject of two customer disputes:
- 5/16/2017: Allegations from 2/2015 to 5/2017 allege that Parikh engaged in excessive trading and unsuitable investment recommendations. This allegation requested $350,000 in damages and settled for $499,999
- 2/3/2021: Allegations from an unspecified time frame claiming unsuitable investments, this dispute is still pending
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