On January 29, 2021, Manish Shah (MANISH H SHAH,MANISH HEMANT SHAH) CRD#: 4652835 a broker formerly with Northwestern Mutual Investment Services of Princeton, New Jersey, has been suspended by FINRA for 20 months, beginning February 1, 2021 and ending on September 30, 2022.  He was also fined $15,000.00 by FINRA.

Without admitting or denying FINRA’s findings, Manish Shah consented to the sanctions and to the entry of findings that he allegedly borrowed $75,000 from one of his brokerage clients without providing notice to his member firm or obtaining its approval for the borrowing arrangement. FINRA’s findings stated that Manish Shah documented the terms of the loan in a loan agreement and repayment schedule. Allegedly, Shah failed to repay the loan in accordance with the repayment schedule. Shah told the brokerage client that he would use the money to buy another registered representative’s book of business, but he allegedly did not, but used it mostly for personal expenses.

After Manish Shah‘s termination from the firm and a complaint by the brokerage client to the firm regarding the loan, Shah repaid the client. Shah also completed firm compliance questionnaires in which he allegedly falsely represented that he had not borrowed money or securities from or lent money or securities to a client.

In September of 2018, according to FINRA, Manish Shah allegedly borrowed $200,000 from another insurance client and allegedly told the client the money was to buy out another registered representative’s book of business and again using it on personal expenses, and other debt. After the client asked for documents for the loan, Shah allegedly altered the document to show the client as a beneficiary on his own personal life insurance policy that had lapsed and sent the client’s accountant an inaccurate balance sheet. The client in turn complained to Northwestern, which began an investigation. According to FINRA, Shah allegedly admitted to only one of the loans and failed to submit the alleged falsified documents he had sent to the accountant.

According to FINRA, Manish Shah repaid the insurance client $70,277 and the firm entered into a settlement agreement for the outstanding loan balance plus interest and attorney’s fees.

Manish Shah, according to FINRA’s BrokerCheck, had been in the securities industry for 15 years and has 5 Disclosures on his FINRA CRD report, 2 are Customer Disputes. One dispute from March 13, 2019, alleged that Shah had induced a client “through false representations to lend him $200,000 and also alleged claims including fraud and conversion.” The settlement amount was $145,865.95. The other dispute, from June 28, 2019, alleged that a client and her husband had loaned Shah $75,000 in 2016 to buy out a retiring broker’s book of business, and that Shah had defaulted on the repayment. That dispute, was seeking $25,000, was “closed with no action.” In the letter of acceptance, FINRA states that Shah repaid the client.  Shah was discharged from Northwestern Mutual Investment Services, LLC. on March 29, 2019.

According to FINRA’s BrokerCheck Manish Shah had only been listed with the following firm:


If you’ve experienced losses due to the actions or recommendations of Manish Shah, a broker formerly with Northwestern Mutual Investment Services of Princeton, New Jersey, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.