South Florida Arbitration & Litigation Lawyer Blog
FINRA Arbitration Fraud and Broker Mismanagement Attorney, Russell L. Forkey, Esq.
FINRA Account Executive Enforcement Action:
Sanjeev Jayant Shah (CRD #4009454, Registered Representative, New York, New York, formerly licensed with Citigroup Global Asset Markets, Inc.) was barred from association with any FINRA member in any capacity. The sanction was based on findings that Shah made unauthorized foreign currency trades in a customer bank account, resulting in margin calls being generated for the account and consequently the customer’s other bank accounts were frozen, preventing the customer from transferring funds from those accounts. The findings stated that Shah made unauthorized money transfers from another customer’s bank account to satisfy, in part, the margin calls for the first client and to be able to transfer funds at its request. The findings also stated that in order to effect the unauthorized fund transfers, Shah forged a signature and created falsified Letters of Authorization (LOAs) by cutting a bank director’s signature from an account opening document and pasting it on a fabricated LOA. The findings also included that Shah fabricated documents regarding another client’s obligation to meet capital calls and falsely created a memorandum representing that the capital calls had been met. FINRA found that Shah falsely told the customer’s beneficial owner that all outstanding calls had been met and to ignore notices he too was receiving. FINRA also found that to make the memorandum appear authentic, Shah fabricated an internal email address for a fictitious employee and sent the memorandum to the beneficial owner to make him believe that the calls had been met. FINRA also found that Shah failed to respond to FINRA requests to provide on-the-record testimony and to provide a signed statement. (FINRA Case #2009017788201).
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