Did you lose money investing with Kapil Maheshwari (CRD# 6388540)?
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.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of March 20, 2023, 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.
Disclosure Events
1 Regulatory Event(s)
January 19, 2021 – A NAC decision became final in which Maheshwari was barred from association with any FINRA member in all capacities and ordered to pay disgorgement of ill-gotten gains in the amount of $2,760, plus interest. The NAC affirmed the findings and affirmed the sanctions imposed by the OHO. The sanctions were based on findings that Maheshwari misused confidential information concerning a corporate acquisition obtained during his employment with his former member firm by purchasing shares in the target corporation before the acquisition was announced to the public. The findings stated that Maheshwari was assigned to a team at the firm to assist a publicly traded company develop strategic options, including potential mergers and acquisitions. Maheshwari knew that the company wanted to approach the corporation about a potential acquisition. After Maheshwari left the firm, he purchased shares of the corporation in his personal retirement account and shares in his wife’s retirement account, both held at another broker-dealer. In total, Maheshwari purchased $10,120 worth of stock and his investments in the corporation comprised a small percentage of his and his wife’s overall portfolios. A week after Maheshwari purchased the shares, the company announced its acquisition of the corporation. Maheshwari attempted to sell his and his wife’s shares, but his broker declined to process the trades and alerted the firm. When the company’s acquisition of the corporation was finalized, Maheshwari and his wife received cash for their shares, resulting in a total profit of $2,760. (FINRA Case #2017055608101)
Current and Previous Registrations
08/12/2014 – 09/22/2017 CREDIT SUISSE SECURITIES (USA) LLC (CRD#:816) NEW YORK, NY
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Kapil Maheshwari and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
