Kishan Parikh (also known as Sean Parikh) of New York New York a stockbroker formerly registered with Aegis Capital Corp has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings of Parikh’s excessive and unsuitable trading in customer accounts resulting in losses. Department of Enforcement v. Kishan Parikh Disciplinary Proceeding No. 2021070337401 (July 7, 2021).
Parikh made excessive and unsuitable trades in five Aegis Capital Corp customer accounts. Between August of 2014 and November of 2016, 442 trades had been executed by Parikh. Those transactions involved $31,100,000.00 in principal value. Customers sustained over $33,000.00 in losses even though Aegis Capital Corp generated $179,112.00 in commissions. The stockbroker personally obtained $89,000.00 in commissions.
The AWC stated that annualized cost-to-equity ratios in the customers’ accounts ranged between 27.5 percent and 59.7 percent, and annualized turnover rates ranged between 13.2 and 199.8. The regulator noted that the cost-to-equity ratios and turnover rates showed that Parikh excessively traded. The stockbroker violated FINRA Rules 2010 and 2111 for quantitatively unsuitable transactions.
FINRA also stated that 53 unauthorized trades had been effected by the stockbroker in two customer accounts. Those transactions involved $4,200,000.00 in principal value. Parikh violated FINRA Rule 2010 because of this.
FINRA Public Disclosure discloses that Parikh has been identified in two customer initiated investment related disputes regarding accusations of his wrongdoing when he was employed by Aegis Capital Corp. On September 18, 2018, a customer initiated investment related FINRA securities arbitration claim involving Parikh’s conduct was settled for $499,999.00 in damages based upon allegations that Parikh provided unsuitable recommendations to the customer in regard to securities transactions from February 2015 to May of 2017. FINRA Arbitration No. 17-01221. The claim alleges that the stockbroker’s excessive trades resulted in damages to the customer.
On February 3, 2021, another customer filed an investment related FINRA securities arbitration claim concerning Parikh’s conduct in which the customer sought more than $5,000.00 in damages founded on accusations that transactions executed in their account were not suitable for them at Aegis Capital Corp. FINRA Arbitration No. 21-00273 (Feb. 3, 2021).
Parikh was associated with Aegis Capital Corp between May 31, 2012 and April 3, 2019.
