Kaival Patel of Hackensack, New Jersey, a stockbroker formerly registered with Stifel Nicolaus Company, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Patel was uncooperative with FINRA’s investigation into allegations of Patel committing fraud. Letter of Acceptance, Waiver, and Consent No. 2022074024401 (May 17, 2022).
FINRA’s investigation stems from Patel being charged five months earlier by federal prosecutors with one count of money laundering, one count of false statements, one count of health care fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit wire fraud and health care fraud. Criminal Action No. 22-35 (RBK) (January 19, 2022). According to the United States Attorney’s Office for the District of New Jersey, Patel allegedly stole $3,400,000.00 through making fraudulent claims for prescriptions that were not medically necessary.
On February 18, 2022, Patel was asked by FINRA to provide documents and information as part of its investigation into Patel’s activities. On April 6, 2022, FINRA received some but not all documents from Patel. The regulator determined that Patel did not fully comply with its request.
Patel’s lawyer told FINRA that Patel would produce no more documents or information in the investigation. FINRA determined that Patel violated FINRA Rules 2010 and 8210 for failing to comply with its request.
FINRA Public Disclosure also shows that Patel was identified in a customer initiated investment related written complaint on August 29, 2003, where the customer sought compensatory damages founded on accusations of misrepresentation concerning an annuity while Patel was registered with AXA Advisors.
Patel was employed by Wells Fargo Clearing Services between August 15, 2011, and July 12, 2018, and Stifel Nicolaus between July 9, 2018, and February 4, 2022. He was discharged by Stifel Nicolaus as a result of being indicted.