Devindra Sukhram, of McDonough, Georgia, a stockbroker with Cape Securities, was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in the unauthorized discretionary trading of customer accounts. Letter of Acceptance, Waiver and Consent, No. 2014041613501 (Aug. 17, 2016).
According to the AWC, between October 7, 2011, and December 13, 2011, while Sukhram was associated with Cape Securities, he engaged in unauthorzed trading and had effected transactions in one of the firm’s client accounts, despite not having the customer’s prior written approval for doing so. Apparently, the firm had also not deemed the customer’s account as discretionary.
The AWC stated that Sukhram failed to engage the customer in any dialogue regarding the trades that were entered on the days that the transactions occurred. Further, the AWC stated that Cape Securities did not allow for discretionary trading to be utilized in any manner other than through time and price based discretion. FINRA found that Sukhram’s conduct was violative of FINRA Rule 2010 as well as NASD Conduct Rule 2510(b).
Public disclosure records reveal that on July 21, 2014, Sukhram was named in a pending customer dispute, in which the customer has requested $250,000.00 in damages after alleging breach of contract, churning, breach of fiduciary duty, and unauthorized trading.
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