Gopi Vungarala — Alleged Investment Fraud

Rochester stockbroker fraud attorneyGopi Krishna Vungarala Allegedly Induced a Native American Tribe to Invest Hundreds of Millions of Dollars in Non-traded Real Estate Investment Trusts and Business Development Companies, without Disclosing that He and His Firm Took Commissions on the Sales

Gopi Vungarala, from at least June 2011 through January 2015, and through his firm, PKS, allegedly regularly lied to his customer, known only as ST, a Native American tribe, regarding the investments he recommended, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Jason Kane and James Booker.

Peiffer Wolf Carr & Kane securities practice lawyers are investigating Gopi Vungarala’s alleged investment fraud.

Investors who believe they may have lost money in activity related to Gopi Vungarala’s alleged investment fraud are encouraged to contact attorneys Jason Kane or James Booker with any useful information or for a free, no obligation discussion about their options.

Vungarala allegedly fraudulently induced the aforementioned tribe to invest hundreds of millions of dollars in non-traded real estate investment trusts and business development companies, but also allegedly failed to reveal that he and his firm received commissions on the sales (usually seven percent) or the availability of certain volume discounts, according to the aforementioned Complaint.

Gopi Vungarala, in November 2008, was hired by the Native American tribe as its first in-house Investment Manager to manage its investment portfolio, the Complaint notes.

Vungarala allegedly joined the staff of the Tribe’s Treasury Department, which purportedly managed the tribe’s investments, and members of the tribe allegedly relied on Vungarala as their in-house investment professional, the Complaint states. The tribe also allegedly did not have much investment experience and were not familiar with securities brokerage-industry terminology and practices.

Gopi Vungarala Barred by FINRA and Ordered to Disgorge $9,682,629 in Commissions

Gopi Krishna Vungarala, based on the alleged aforementioned behavior, allegedly violated FINRA Rules and therefore has been barred by FINRA and ordered to disgorge his unlawful gain in the amount of $9,682,629 together with pre-judgment interest from January 18, 2015, until paid, according to the aforementioned Complaint being reviewed by attorneys Jason Kane and James Booker.

Vungarala was allegedly the only Treasury Department employee who had any significant investment experience beyond having a 401(k) account and hence Vungarala allegedly took advantage of the Tribe’s trust and lack of sophistication by making false and misleading statements that concealed his personal financial interest in steering the Tribe to investing in Real Estate Investment Trusts (REIT’s) and Business Development Companies (BDC’s), the Complaint notes.

Securities Lawyers Investigating

The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Gopi Vungarala’s alleged investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Gopi Vungarala’s alleged investment fraud may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or James Booker, for a free no-obligation evaluation of their recovery options, at (585) 310-5140 or via e-mail at or

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In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.