From March 2016 to April 2016, former broker Neemit Shah allegedly engaged in two undisclosed and unapproved private securities transactions by soliciting investors to purchase securities in Future Income Payments without providing prior written notice to his former employer, NYLife Securities, according to a FINRA Letter of Acceptance, Waiver, and Consent (AWC), under review by attorney Alan Rosca.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating activity related to Neemit Mukesh Shah’s alleged unapproved and undisclosed private securities transactions through Future Income Payments Ponzi scheme are encouraged to contact attorney Alan Rosca with any useful information or for a free, no-obligation discussion about their recovery options. Call 888-998-0530, via email arosca@rscounsel.law, or complete the contact form on this webpage.
Neemit Mukesh Shah Fined and Suspended by FINRA
On May 19, 2020, former broker Neemit Shah’s former employer, NYLife Securities, filed a Form U5 terminating Shah’s association with the firm and registration with FINRA, according to the AWC. Shah’s termination is correlated to his alleged engagement in soliciting two investors to purchase securities, in the total amount of $408,000, in Future Income Payment’s Ponzi scheme from March 2016 to April 2016. Neemit Shah allegedly received a total of $8,160 in commission in connection with these private securities transactions.
According to publicly released documents, NYLife Securities prohibited registered representatives from participating in private securities transactions without prior written approval from the firm. Neemit Shah allegedly did not provide notice to his firm prior to participating in Future Income Payment transactions with two investors nor did he obtain approval from the firm, according to the AWC. Reportedly, Shah’s failure is aggravated by his false attestation to his firm that he did not participate in private securities transactions.
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On October 6, 2020, Shah agreed to and signed the Acceptance Waiver and Consent order issued by FINRA which suspended him in all capacities for six months. In addition to the suspension, he was also issued civil and administrative penalties to the tune of $5,000. The suspension will continue until April 18, 2021.
The team of investment loss lawyers at Rosca Scarlato LLC is investigating the alleged Ponzi scheme involving broker Neemit Shah. Investors who believe they are a Ponzi scheme victim are encouraged to call 888-998-0530, send an email to arosca@rscounsel.law, or use the contact form on this webpage for a free, no obligation discussion about their case.
Neemit Mukesh Shah’s Alleged Participation in Future Income Payments Ponzi Scheme
Previously registered broker Neemit Shah conducted two undisclosed and unapproved private transactions by allegedly soliciting two of his NYLife Securities clients to invest in Future Income Payments (FIP). FIP operated a Ponzi scheme by actively recruiting pension holders who were in need of money, according to a press release by the United States Attorney’s Office for the District of South Carolina. Allegedly, the pensioners made monthly payments to FIP in exchange for a lump sum payment or loan.
To keep the scheme functioning, FIP allegedly solicited investors to purchase “structured cash flows”, which were considered the pensioners’ monthly pension payments, according to the press release. As part of the scheme, FIP allegedly used new investor funds to make payments to earlier investors to keep the scheme operating smoothly.
In early 2018, according to an Indictment, FIP ceased doing business and over 2,600 victimized investors were owed $300 million. Scott A. Kohn, the owner of Future Income Payments, LLC, was charged in the Indictment alleging a conspiracy to engage in mail and wire fraud.
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Neemit Shah Has Been Registered with FINRA for 12 Years
Neemit Shah joined the securities industry with FINRA in July 2004 as a General Securities Representative at Pruco Securities in Newark, New Jersey, according to his FINRA Brokercheck page. He remained there until April 2005.
About two years later, in March 2007, Shah was employed with First Clearing in St. Louis, Missouri, until July 2008. He then switched to NYLife Securities in Glen Allen, Virginia, in January 2009 until November 2016. About a month later he joined MML Investors Services also in Glen Allen, Virginia December 2016 until November 2018.
Less than a year later he became employed with Northwestern Mutual Investment Services in Richmond, Virginia, from September 2019 until May 2020 when he was suspended and fined by FINRA for outside business activity allegations.
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.
Lost money with Neemit Mukesh Shah’s Alleged Involvement in Future Income Payments Ponzi Scheme?
The Rosca Scarlato LLC law firm often represents investors who lose money as a result of commodities fraud or broker misconduct and are currently investigating Neemit Mukesh Shah’s alleged participating in Future Income Payments Ponzi scheme.
The firm takes most cases like this type on a contingency fee basis and advance 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 a variety of cases, and is currently investigating potential claims on behalf of investors in Future Income Payments.
Investors who believe they have fallen victim to a Ponzi scheme as a result of Neemit Shah’s 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.
