FINRA Theft and Unauthorized Use of Customer Funds Arbitration Attorney, Russell L. Forkey, Esq.

September, 2011:

Devin Raj Anand (CRD #5160369, Registered Representative, Calabasas, California) was barred from association with any FINRA member in any capacity. The sanction was based on findings that Anand converted customer funds by wiring funds totaling $51,289 from the customer’s account to outside bank accounts of which Anand was associated; the customer did not authorize and had no knowledge of any of the wire transfers Anand made. The findings stated that Anand attempted to wire additional funds totaling $24,000 from the customer’s account but Anand’s member firm did not complete the wires. The findings also stated that Anand misappropriated funds from a non-customer by creating a false account, borrowing $49,500 in funds from her 401(k) account without her knowledge or authorization, depositing the money into a bogus account he created in the noncustomer’s name at his firm, and then wiring funds out of the account for his benefit; the individual was an employee of a business Anand’s relatives owned. The findings also included that the individual did not authorize Anand to open an account, did not complete or sign any new account opening documents and, in furtherance of the scheme, Anand created false documents related to the opening of the account which he submitted to his firm, thereby causing his firm to maintain inaccurate books and records. FINRA found that Anand failed to respond to FINRA requests for information and to appear and testify at an on-the-record interview. (FINRA Case #2009017302001).