Suresh Basnet of Southfield Michigan a stockbroker formerly employed by Voya Financial Advisors has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Basnet engaged in private securities transactions while associated with CoreCap Investments Inc. Letter of Acceptance Waiver and Consent No. 2017053590001 (Jan. 3, 2019).
According to the AWC, an investigation was launched by FINRA into Basnet’s activities leading to Basnet being discharged from Voya Financial Advisors. Apparently, a Form U5 had been filed by the firm on March 14, 2017, in which FINRA was notified that Voya Financial Advisors terminated Basnet for engaging in private securities transactions in contravention of the firm’s policies.
The AWC stated that in 2016, an investment idea had been proposed to two customers of the firm by Basnet concerning a real estate purchase in Nepal. Apparently, the objective of the venture was to buy land located in Nepal for profit, and for Basnet’s Nepal relatives to manage the land. The AWC stated that investment terms and conditions had been discussed by Basnet with Voya Financial Advisors customers. For instance, Basnet reportedly discussed the returns that were expected to be produced from the investments as well as the period in which the customers would be invested.
Evidently, two of the firm’s customers collectively invested $55,00.00 in the venture following Basnet’s presentation. The customers reportedly tapped their investments accounts to make the purchase. FINRA stated that Basnet took part in those customers’ outside transactions by advising customers to purchase them; placing customers’ funds into accounts that Basnet maintained control over; transferring customers’ funds elsewhere; and assisting the customers in their purchases of land in Nepal.
FINRA stated that Basnet never informed the firm about Basnet’s role in effecting transactions away from the firm despite FINRA’s Rules requiring disclosure. FINRA found Basnet’s failure to be forthcoming in this respect to be violative of FINRA Rules 2010 and 3280.
Basnet was registered at CoreCap Investments Inc. between July 25, 2017 and February 23, 2018.
