Shindeep Balchandani Barred from Securities Industry After His Alleged Association with Boiler-Room Shop NSM Securities

New Orleans stockbroker fraud attorney

New Orleans stockbroker fraud attorney

Shondeep Balchandani, formerly associated with NSM Securities, Inc. (“NSM”), was barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”) related to his alleged misconduct while working with NSM, according to an order issued by FINRA’s Office of Hearing Officers.

The Peiffer Rosca securities practice attorneys Jason Kane and Joe Peiffer are investigating the matter.

NSM’s founder, Niyukt Bhasin, instructed his brokers on cold-calling, prospecting for customers, opening accounts, and recommending stocks, according to the order. Bhasin directed his firm’s brokers to employ his aggressive short-term strategy, which involved concentrating a commission-based account in a few securities, predominantly stocks or other equities, liquidate the positions shortly after acquiring them, and then repeating the process, according to FINRA. Bhasin also encouraged his brokers to use leverage or margin, which magnified the considerable risks associated with his aggressive strategy, according to the order. Bhasin’s short-term trading strategy resulted in higher turnover rates and cost-to-equity rations in, and generated relatively large commissions from, customer accounts, according to the order.

Bhasin incentivized his brokers to actively trade accounts by basing their payout on a sliding scale as NSM paid its brokers between 60 and 80 percent of their monthly gross commissions depending on their production level, according to the order.

Balchandani was accused of employing the aforementioned aggressive short-term trading strategy and consented to his ban from the securities industry without admitting or denying the allegations levied against him the FINRA.

The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. 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 investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

Broker: Shondeep Balchandani

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here

Peiffer Wolf (1250 Posts)

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.