Unsuitable Investment Lawyers Are Currently Investigating the Allegations Involving Satya Brata Shaw
Satya Brata Shaw, a previously registered broker and previously registered investment adviser, is the subject of two pending customer disputes instituted against him on the allegation of unsuitability of investment recommendations. Unsuitable investment lawyer Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the pending customer disputes against the previously registered broker Satya Shaw on the allegation of recommending unsuitable investments.
Shaw was last in the employment of Center Street Securities, Inc. till November 2016. Center Street Securities, Inc. is a member firm of the Financial Industry Regulatory Authority (FINRA) and Satya Shaw was in their employment when the alleged conducts of the pending customer disputes were carried out.
Two of the Satya Brata Shaw Customers Allege Losses Due to Unsuitable Investments
Publicly available information reviewed by the Rosca Scarlato unsuitable investment lawyers shows that the previously registered broker and investment adviser is the subject of two customer disputes instituted against Shaw between May 2019 and May 2020. According to the reports on his FINRA Brokercheck page, the latest customer dispute was disclosed on the 21st of May 2020 containing the allegations of the previously registered investment adviser making unsuitable investment recommendations to the client. The client in this pending customer dispute is alleging that the products involved were alternative / REIT investments, and seeks to recover $140,000 in damages as reported.
The second pending customer dispute as reported was disclosed on 7th May, 2019. This dispute was initiated on similar allegations to the latest dispute mentioned above. The client alleged the unsuitability of the investment recommendations advised by Satya Shaw and further alleged losses on such investments made in 2013, 2104, 2015 and 2016. The reports also show that the product type involved is insurance and alternatives, and the investor is seeking to recover $2,000,000 in damages from this dispute.
Satya B. Shaw Has Been the Subject of Previous Regulatory Sanctions
Also reported in the Brokercheck report, Satya B. Shaw was the subject of a regulatory sanction awarded by Florida Office of Financial Regulation in July 2019. The sanction was a Cease and Desist Order which was accompanied by civil and administrative penalties to the tune of $40,000. According to the sanction, Satya Shaw agrees to have a Registration Agreement with the Florida Office of Financial Regulation if he has a subsequent registration as an associated person of a Florida-registered broker dealer or investment adviser approved. Satya Shaw is also precluded from owning either directly or indirectly, a broker-dealer or investment adviser as reported.
FINRA Suspends and Fines Satya Shaw For Failure to Disclose Six Outside Business Activities
In another regulatory action initiated by FINRA, Satya B. Shaw was reportedly suspended in all capacities for six months in August 2017. Satya Shaw, through an Acceptance, Waiver and Consent (AWC) Order without admitting or denying the findings, consented to the sanction and civil and administrative penalties in the sum of $10,000. It was reported that the sanctions were based on the allegations that the previously registered broker participated in unapproved outside transactions. Satya Shaw allegedly engaged in six outside transactions without the prior approval of his firm.
The report further alleged that Satya B. Shaw was a member of six limited liability companies in which he received compensation for marketing insurance and preparing tax returns for one of the companies. The other five companies which Shaw held a management role were owned by his wife. He was also alleged to have dealt with an insurance agent who was not registered with any broker-dealer, whom he paid about $46,680 in compensation for client referrals.
Additional Regulatory Sanctions Involving Satya Brata Shaw
In November 2009, Satya Shaw was sanctioned by the State Of South Carolina Department of Insurance. As stated in the public records, Shaw agreed to pay $3000 in civil and administrative penalties. This was based on the allegation that he failed to renew his insurance license on a timely basis and inadvertently wrote insurance policies for residents of the State of South Carolina prior to properly renewing his license with the State.
Because he failed to disclosed the above mentioned sanction, Satya Shaw was subsequently sanctioned by several other state regulators:
- in April 2011 his license was revoked by the Commonwealth of Virginia State Corporation Commission;
- in January 2012 his license was revoked by the State of Utah Insurance Commissioner;
- in November 2012 his license was revoked by the State of California Department of Insurance;
- in May 2013 Shaw was ordered to pay a $500 fine by the North Carolina Department of Insurance; and
- in March 2016 Shaw was ordered to pay a $1500 fine by the Florida Department of Financial Service.
In addition to the above mentioned sanctions, in February 2000 Satya B. Shaw was fined $500 and placed on probation for a period of one year by the Florida Department of Insurance for the allegations that Shaw “offered an unlawful inducement to a person to encourage them to purchase life insurance”, his Brokercheck report states.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Satya Shaw Investment Losses? Unsuitable Investment Lawyers Currently Evaluating Potential Recovery Options
The Rosca Scarlato LLC law firm often represents investors who lose money as a result of unsuitable investment recommendations and is currently investigating conduct related to allegations contained in Satya Brata Shaw’s pending customer disputes. The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related Satya Brata Shaw’s alleged unsuitable investment recommendations, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
