Partho Sarathi Ghosh of New York New York a stockbroker formerly registered with NYLife Securities LLC has been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Ghosh participated in an undisclosed outside business activity involving his marketing of finance solutions to prospective customers. Department of Enforcement v. Partho S. Ghosh Disciplinary Proceeding No. 2016051615301 (Sept. 27, 2018).
According to the Complaint, from May 2016 to July 2016, during the time that Ghosh was associated with NYLife Securities LLC, he took part in outside business activities that had not been approved by NYLIfe Securities. Apparently, Ghosh failed to inform the firm about his ownership and director roles for P.S. Ghosh, Inc. – a Delaware corporation. Apparently, the corporation had been used by Ghosh to market structured financial solutions to willing customers.
The Complaint stated that when Ghosh became employed by NYLife Securities LLC and its insurance affiliate, he was told to stop operating an insurance business similar to P.S. Ghosh, Inc. Apparently, NYLife’s hiring of Ghosh had been conditioned on Ghosh ceasing and desisting those operations for the other business. FINRA Department of Enforcement alleged that Ghosh still set up P.S. Ghosh, Inc. despite his knowledge that the firms did not want him to be involved in his previous company – one with a similar structure to P.S. Ghosh, Inc.
The Complaint further stated that on May 20, 2016, Ghosh’s employment with the firm commenced, but he also referred to himself as P.S. Ghosh, Inc.’s chief executive officer for prospective customers. Ghosh used his P.S. Ghosh Inc. e-mail account to communicate with prospective customers about investment strategies that Ghosh designed on P.S. Ghosh, Inc’s behalf. The Complaint stated that it was not until July 30, 2016 that Ghosh informed NYLife Securities LLC about his involvement with P.S. Ghosh, Inc.; however, by this time one of NYLife’s registered representatives suspected his outside activities. FINRA Department of Enforcement alleged that Ghosh’s conduct was violative of FINRA Rules 2010 and 3270.
NYLife Securities LLC terminated Ghosh’s registration on October 7, 2016.
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