Earlier this year, broker Suresh Basnet served a 45-day suspension for his role in alleged unapproved private securities transactions. The suspension was one of two sanctions in a FINRA waiver he signed earlier this year.
The dispute involved the broker’s role in two real estate transactions by customers of his member firm. Basnet did not provide proper notice to his firm before engaging in the transactions.
The problem arose in December of 2016 when Basnet solicited investments for land purchases from two firm customers who also happened to be longtime friends of the broker.
With the help of his relatives in Nepal, the broker facilitated the purchase of plots of land in Nepal with funds from the friend’s accounts at the firm. In all, Basnet’s friends invested $55,000 in the scheme.
Although Basnet was not compensated in the transactions and the customers were repaid by the profits of the land sales, the broker’s behavior was still unethical.
Basnet was a registered broker with Voya Financial Advisors, Inc. at the time of the land transactions. The firm fired him in March of 2017 following the allegations of the unapproved transactions. The suspension was only one part of the FINRA agreement. Basnet will also pay a fine of $5,000. The broker is not currently registered as a broker.
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