Sign of the Financial Industry Regulatory Authority

Kishan Parikh (also known as Sean Parikh) of New York New York a stockbroker formerly registered with Aegis Capital Corp has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement with executing unsuitable, excessive and unauthorized trades in the accounts of Aegis Capital Corp customers. Department of Enforcement v. Kishan Parikh Disciplinary Proceeding No. 2021070337401 (Mar. 17, 2021).

According to the Complaint, during the period that Parikh was associated with Aegis Capital Corp, at least five investors received unsuitable recommendations from him, and their accounts had been excessively traded by the stockbroker.

The Complaint asserts that the customers’ accounts had been controlled by Parikh during the period that excessive and unsuitable trades were made. He purportedly decided what securities to purchase and sell, and decided the frequency of trades in customers’ accounts. Between August of 2014 and November of 2016, a total of 442 trades were allegedly executed in customers’ accounts by Parikh. Those transactions allegedly contained a $31,100,000.00 principal value.

According to FINRA, Parikh’s frequent trading led his customers to collectively experience annual cost-to-equity ratios ranging between 27.5 percent and 59.7 percent. Their accounts supposedly contained turnover rates ranging between 10.9 and 199.8. Customers experienced $33,000.00 in losses altogether. The regulator contends that Parikh took in commissions and gross sales credits amounting to $179,112.00 This enabled him to personally receive $89,000 for his trading. The Complaint states that Parikh’s trading was excessive because of those high annual cost-to-equity ratios and turnover rates.

FINRA alleges that Parikh neglected to have an adequate basis to believe that his trading was appropriate for customers given the high costs and high frequency of transactions. The Complaint states that the stockbroker violated FINRA Rules 2010 and 2111 in this respect.

The Complaint also states that 53 trades had been made by Parikh in the accounts of two customers without their consent. The stockbroker’s purported unauthorized trading involved $4,200,000.00 in principal value. FINRA alleges that Parikh violated FINRA Rule 2010 for this reason.

FINRA Public Disclosure reveals that Parikh has been referenced in two customer initiated investment related disputes concerning accusations of his improper activities while associated with Aegis Capital Corp. On September 18, 2018, a customer initiated investment related FINRA securities arbitration claim regarding Parikh’s activities was resolved for $499,999.00 in damages supported by allegations that unsuitable investment recommendations had been made to the customer and that excessive trades were effected in their account by Parikh between February 24, 2015 and May 17, 2017. FINRA Arbitration No. 17-01221.

Parikh is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer sought compensatory damages founded on accusations that unsuitable investments had been purchased or sold for the customer’s account during the time that Parikh was associated with Aegis Capital Corp. FINRA Arbitration No. 21-00273 (Feb. 3, 2021).

Parikh was registered with Aegis Capital Corp between May 31, 2012 and April 3, 2019.