Rajen Duggal, of San Francisco, California, a stockbroker registered with Paulson Investment Company LLC, has been fined $5,000.00 and suspended for 30 days from associating with any Financial Industry Regulatory Authority (FINRA) member because Duggal engaged in an undisclosed outside business activity. Letter of Acceptance, Waiver, and Consent No. 2023078112801 (January 17, 2024).
FINRA’s regulatory action against Duggal originated from its review of the Form U5 filed by Paulson. Between July of 2022 and March of 2023, while associated with Paulson, Duggal worked with a startup business without notifying Paulson. His activities included investor relations. He falsely stated on a firm questionnaire in October 2022 that he was not engaged in any outside business activities.
Duggal’s association with the startup resulted in approximately $80,000 in compensation over seven months. By failing to disclose his involvement with the startup and making false statements on a firm questionnaire, Duggal violated FINRA Rules 3270 and 2010.
Duggal was associated with Paulson Investment Company LLC in San Francisco, California from March 24, 2022 to March 8, 2023. He was discharged for violating FINRA Rule 3270 and the firm’s policies regarding outside business activities.
