Gurpreet Chandhoke and Stephen Shea Sued by FINRA
In a complaint filed by FINRA, and reported in October, 2019 Gurpreet Chandhoke and Stephen Shea, of Walnut Creek, California were named as Respondents alleging that they failed to disclose outside business activities and engaged in private securities transactions in violation of FINRA rules. .
The complaint alleges that Chandhoke and Shea created securities offering materials and gave them to prospective investors in order to solicit their interest in investments. At least three companies were created by Chandhoke for the means of engaging in securities transactions without disclosing the full extent of the outside business to his broker dealer. Also in violation of FINRA rules, Chandhoke and Shea opened accounts at other broker dealers and failed to disclose these accounts to the member firms. The complaint further alleges that Chandhoke and Shea engaged in nearly ten million dollars of private securities transactions without providing written notice of those transactions to their firms prior to the sales.