Unsuitable Investments with Former Center Street Securities, Inc. Broker Satya Shaw?
Posted on Thursday, September 5th, 2019 at 8:34 pm
Former Center Street Securities, Inc. broker Satya Shaw (CRD# 1229175) is alleged to make unsuitable investment recommendations. Shaw was registered with Center Street Securities, Inc. in Wesley Chapel, Florida from 2010 to 2016.
In July 2019, the Florida Office of Financial Regulation sanctioned Shaw to a cease and desist as well as a $40,000 penalty and fine regarding, “If Mr. Shaw has a future registration approved by the Office as an associated person of a Florida-registered dealer or investment adviser, he agrees to have a Registration Agreement with the Office. However, he may not directly or indirectly own a broker, dealer, broker-dealer, or investment adviser.”
In August 2017, Shaw consented to the sanctions and to the entry of findings that he engaged in six outside business activities without seeking prior approval from his member firm.According to the acceptance, waiver & consent, “The findings stated that Shaw failed to disclose that he was a member of six limited liability companies, one of which received compensation in connection with the marketing of insurance and preparation of tax returns. Shaw held a management role in the remaining five companies, which were owned by his wife for the purpose of renting real estate. The findings also stated that an insurance agent who was not registered with a broker-dealer, identified clients of his who sought diversification in securities and referred those clients to Shaw. In return, Shaw paid the insurance agent approximately $46,680 in securities transaction-based compensation.” Shaw was sanctioned to a $10,000 civil and administrative penalty and was suspended for six months.
In March 2016, the Florida Department of Financial Services alleged that, “Mr. Shaw inadvertently failed to report to the State of Florida the administrative action taken by the State of South Carolina within the required 30 day period.” Shaw was sanctioned to a $1,500 civil and administrative penalty and fine.
In May 2013, the North Carolina Department of Insurance alleged, “Mr. Shaw inadvertently failed to report to the State of North Carolina the administrative action taken by the State of South Carolina within the required 30 day period.” Shaw was sanctioned to a $500 civil and administrative penalty and fine.
In December 2012, the State of California Department of Insurance revoked Shaw’s registration, alleging, “Mr. Shaw inadvertently failed to notify the State of California of the administrative action taken by the State of South Carolina within the required 30 days.”
In January 2012, the State of Utah Insurance Commissioner revoked the registration of Shaw alleging, “Mr. Shaw inadvertently failed to report to the State of Utah the administrative action taken by the State of South Carolina within the required 30 day period.”
In April 2011, the Commonwealth of Virginia State Corporation Commission revoked the registration of Shaw, alleging, “Mr. Shaw inadvertently failed to report to the Commonwealth of Virginia the administrative action taken by the State of South Carolina within the required 30 day period.”
In November 2009, the State of South Carolina Department of Insurance sanctioned Shaw to a $3,000 civil and administrative penalty and fine, alleging, “The Department of Insurance of the State of South Carolina alleged that Mr. Shaw failed to renew his insurance license on a timely basis and inadvertently wrote insurance policies for residents of the State of South Carolina prior to properly renewing his license with the State.”
Shaw has been the subject of four customer complaints between 1997 and 2019, one of which was denied, according to his CRD report. Recent complaints are regarding:
May 2019. “Losses and unsuitability—- 2013 2014 2015 and 2016.” The customer is seeking $2 million in damages and the case is currently pending. This case is regarding insurance and alternative investments.
April 2016. “Client claims he did not receive his redemption on the date promised and that his paperwork was lost or misfiled.” The case was settled for $21,844.50. This case was regarding alternative investments.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Center Street Securities, Inc. may be liable for investment or other losses suffered by Shaw’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.