February 4, 2016- Boca Raton, Florida
The Financial Industry Regulatory Authority (FINRA) filed a disciplinary proceeding against brokerage firm Purshe Kaplan Sterling Investments and broker Gopi Krishna Vungarala alleging that from June 2011-January 2015 Vungarala regularly lied to his customer, a Native American tribe, about the investments he was recommending to them.
According to the complaint Vungarala convinced the tribe to invest hundreds of millions of dollars in non-traded real estate investment trusts (REITs) and business development companies (BDCs) , also known as alternative investments, generating over $11 million dollars in commissions.
The complaint seeks disgorgement and other relief. FINRA Disciplinary Proceeding 2014042291901.
According to FINRA records Vungarala has been registered with Purshe Kaplan Sterling Investments since 12/2007.
Purshe Kaplan Sterling Investments has been a FINRA member since 1994. They have about 1,250 registered persons in 460 branch offices.
Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.
If you have losses in an account handled by Purshe Kaplan Sterling Investments , contact us to discuss how you may be able to recover damages for those losses.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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