Did you lose money investing with Stephen Shea (CRD# 3274649)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Stephen Shea. If you suffered losses investing with Stephen Shea, 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 September 17, 2020, Stephen Shea’s FINRA BrokerCheck Report contains the following:
Disclosure Events
1 Regulatory Event(s)
See FINRA Disciplinary Proceeding No. 2015047244701 Complaint
UPDATE 9/17/2020: According to FINRA’s October 2019 Disciplinary Actions: “Gurpreet Singh Chandhoke (CRD #4999369, Alamo, California) and Stephen Fitzgerald Shea (CRD #3274649, Walnut Creek, California) August 12, 2019 – Chandhoke and Shea were named respondents in a FINRA complaint alleging that together they formed two entities with the intent of engaging in, and did in fact engage in, non-securities business activities, but failed to provide prior written notice regarding those outside business activities to their member firms. The complaint alleges that Chandhoke and Shea participated in the non-securities business activities in several ways, including creating and distributing offering materials, soliciting investors, opening and maintaining a bank account on behalf of one entity and making a down payment for a piece of real property. Additionally, the complaint alleges that Chandhoke engaged in two additional non-securities business activities without providing prior written notice to his firms. The complaint also alleges that contrary to their firms’ WSPs, Chandhoke and Shea failed to disclose outside accounts opened at another FINRA member firm. Chandhoke and Shea had a financial interest in each account because they opened and held the accounts in the names of entities that they owned and controlled. The complaint further alleges that Chandhoke and Shea participated in private securities transactions totaling $9,902,425 without providing written notice of those transactions to their firms prior to their participation. In addition, the complaint alleges that Chandhoke structured 37 cash deposits made into four separate bank accounts that he controlled in order to evade federal reporting requirements. The deposits, totaling $72,950, were made at ATMs in the Los Angeles and San Francisco Bay areas and were structured in amounts below $10,000 for the purpose of attempting to evade federal reporting requirements that would have caused a financial institution to file currency transaction reports. Moreover, the complaint alleges that Chandhoke opened a priority line of credit at a firm in the name of his entity, and in the process made false statements. When completing and signing documentation necessary to open the account, Chandhoke falsely attested that no part of the priority line of credit would be “used to purchase, carry, or trade in securities.” Chandhoke’s subsequent actions show that at the time he opened the priority line of credit, he intended to use the proceeds from the priority line of credit to allow him to purchase securities in another account. Further, Chandhoke did in fact use the proceeds from the priority line of credit in that manner. Chandhoke also falsely stated that the purpose of the account was to finance business operations or assets. (FINRA Case #2015047244701 Complaint)
Current and Previous Registrations
05/20/2016 – 08/16/2017 ARETE WEALTH MANAGEMENT, LLC (CRD#:44856) Orinda, CA
02/11/2015 – 04/04/2016 PENSERRA SECURITIES, LLC (CRD#:145994) ORINDA, CA
09/24/2012 – 09/30/2014 GORDIAN INVESTMENTS, LLC (CRD#:158611) Orinda, CA
03/23/2012 – 09/04/2012 INTERNET SECURITIES (CRD#:102800) SAN FRANCISCO, CA
01/23/2012 – 03/16/2012 WHITE PACIFIC SECURITIES, INC. (CRD#:42505) SAN FRANCISCO, CA
10/14/2009 – 07/08/2010 JESUP & LAMONT SECURITIES CORP (CRD#:39056) SAN FRANCISCO, CA
FINRA expelled the firm on 11/04/2010
03/20/2009 – 08/25/2009 IRON CAPITAL SECURITIES, LLC (CRD#:147779) SAN FRANCISCO, CA
06/16/2006 – 04/12/2007 FIDELITY BROKERAGE SERVICES LLC (CRD#:7784) SAN FRANCISCO, CA
01/13/2001 – 03/07/2001 DEUTSCHE BANC ALEX. BROWN INC. (CRD#:2525) NEW YORK, NY
12/20/1999 – 01/13/2001 DB ALEX. BROWN LLC (CRD#:17790) BALTIMORE, MD
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 Stephen Shea 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.