Dwarka Persaud, of Little Silver, New Jersey, has been fined and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he violated a heightened supervision agreement imposed by New Jersey Bureau of Securities by effecting, inter alia, unauthorized trades in customer accounts. Letter of Acceptance, Waiver and Consent, No. 2017052711301 (Aug. 10, 2017).
According to the AWC, on July 29, 2015, Persaud was approved by the New Jersey Bureau of Securities to conduct securities business in the state; however, he was required by his firm to be placed on a heightened supervision policy which restricted him from exercising discretion in customer accounts or obtaining commissions associated with the trades. After the heightened supervision arrangement went into effect, Persaud reportedly traded in a customer’s account on a discretionary basis and obtained commissions from the transaction.
Moreover, Persaud reportedly lied to FINRA staff in the course of completing a questionnaire about his business activities, where he claimed, among other things, that he did not exercise discretion in customer accounts. That is, Persaud’s conduct evidently included servicing a customer’s account by exercising trades on a discretionary basis. Apparently, Persaud also conducted meetings with the public regarding investments; conduct that he claimed never occurred when questioned. FINRA found that Persaud’s conduct was violative of FINRA Rule 2010.
FINRA Public Disclosure confirms that Persaud has been identified in seven customer initiated investment related disputes regarding allegations of his wrongdoing while he was associated with Garden State Securities, Inc., Buckman Buckman and Reid, and J.W. Barclay and Co., Inc. Particularly, he is the subject of a customer initiated investment related arbitration claim, wherein the customer was awarded $40,000.00 on June 19, 2002, based upon allegations that he charged the customer with excessive commissions within over-the-counter equities transactions.
Subsequently, on August 1, 2012, a customer initiated investment related written complaint regarding Persaud’s activities was resolved for $55,000.00 in damages based upon allegations against Persaud of accumulating excessive commissions and churning a customer’s over-the-counter equity investment portfolio. Further, on February 11, 2016, a customer was awarded $48,680.03 in damages according to an investment related arbitration claim involving Persaud’s misconduct, wherein the customer’s claim was supported by allegations that Persaud breached his fiduciary duties, effected unsuitable transactions and churned the customer’s investment account.
Persaud’s registration with Buckman, Buckman & Reid, Inc. was terminated on June 2, 2017. He has been associated with twenty-three different broker dealers, twenty of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach
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