According to records maintained by the Financial Industry Regulatory Authority (FINRA), Denver, Colorado and Pleasant Grove, Utah broker and investment...Read More
Suresh Basnet: Former Voya, CoreCap Advisor Sanctioned by FINRA
A disciplinary action taken by the Financial Industry Regulatory Authority against former Cedar Rapids, Iowa broker and investment advisor Suresh Basnet (CRD# 4426976) suspended him over allegations he participated in undisclosed private securities transactions. A former representative of Voya Financial Advisors, Basnet was suspended for 45 days and fined $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2017053590001) dated January 2019, Suresh Basnet as a representative of Voya Financial Advisors when, in 2016, he “presented an oral investment idea involving the purchase and sale of real estate in Nepal” to two firm customers who were also his “longtime acquaintances.” FINRA’s findings state that the “venture” involved purchasing “plots of land in Nepal for profit” and that it would be managed by relatives of Basnet who lived in the country. He allegedly spoke to the customers about the terms and conditions of the investment, including its expected rate of return, however these terms were not put in writing. According to FINRA, the customers “collectively invested a total of $55,000 in the venture funded by their respective accounts” at Voya in December 2016. FINRA’s findings state that Suresh Basnet solicited the investments, deposited the invested funds into accounts under his control, later transferred the funds from those accounts, and assisted in the facilitation of the purchases of the land plots in Nepal. FINRA states that he did not receive any compensation for his involvement in these transactions, and that when the venture later sold the two land plots it purchased in Nepal, it repaid both of the customers their invested sums as well as profit. FINRA also states that Suresh Basnet did not notify Voya Financial Advisors in writing of these transactions, which FINRA states violated FINRA Rules 3280 and 2010.
As a result of the foregoing alleged conduct, Suresh Basnet was suspended from association with any FINRA member firm in any capacity for 45 days. He was also ordered to pay a fine of $5,000.
Suresh Basnet is not currently registered as a broker or investment advisor. His employment history includes CoreCap Investments, Voya Financial Advisors in Cedar Rapids, Iowa, Merrill Lynch, ING Financial Partners, and Diversified Investors Securities Corporation. He currently holds no state licenses and has passed five securities industry qualification examinations.