Malay Kumar Receives FINRA Suspension For Unsuitable Advice

FINRA issued sanctions to Malay Kumar [CRD: 2482909, Mason, Ohio], according to a regulatory action the regulator brought late last year. Notably, Kumar worked as a financial advisor and broker, with his last employment at Cambridge Investment Research Inc. in Mason, Ohio, from January 10, 2018, to December 21, 2021. Here’s more on FINRA’s sanctions against Kumar.

FINRA Sanctioned Kumar For Violating Federal Rules On Suitability

Particularly, on November 30, 2023, FINRA issued Letter of Acceptance, Waiver, and Consent No. 2022077257801, sanctioning Malay Kumar for violations related to his investment recommendations. Kumar consented to the sanctions and FINRA’s findings that he violated the Care Obligation of Rule 15l-1 of Securities Exchange Act (known as Reg BI).

Specifically, Kumar recommended clients exchange variable annuities without adequately considering the surrender fees and the consequent loss of benefits and liquidity. These recommendations were not based on a reasonable belief that they were suitable or in the best interest of his clients, leading to his clients incurring $50,103.43 in surrender fees. Kumar also provided inaccurate information on transaction documents, failing to identify and submit variable annuity purchases as exchanges. Consequently, he caused his firm to maintain inaccurate books and records.

Specifics On The Sanctions Against Malay Kumar

The resolution to this matter came on November 30, 2023. Kumar faced several sanctions, including a 12-month suspension starting December 4, 2023, and ending December 3, 2024. He was also ordered to pay restitution of $50,103.43 and a fine of $10,000.

Seek Legal Assistance For Losses Involving Kumar

Did you experience damages because of securities broker / financial advisor Malay Kumar? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney concerning a potential recovery. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Kumar and the brokerage firms he worked for deny accusations of sales practice violations.