Initiated By
FINRA
Allegations
FINRA RULES 2010, 8210, NASD RULES 2330(A), 3110: ANAND MISAPPROPRIATED CUSTOMER FUNDS BY WIRING FUNDS FROM THE CUSTOMER'S ACCOUNT TO OUTSIDE BANK ACCOUNTS ASSOCIATED WITH HIM AND OPENED AN ACCOUNT IN THE NAME OF AN INDIVIDUAL, WHO WAS NOT A CUSTOMER OF HIS MEMBER FIRM, USING FUNDS OBTAINED FROM A LOAN AGAINST THE INDIVIDUAL'S 401(K) ACCOUNT, WITHOUT THEIR AUTHORIZATION AND KNOWLEDGE. ANAND BECAME THE REGISTERED REPRESENTATIVE ASSIGNED TO THE FIRM'S ACCOUNT BELONGING TO A CUSTOMER AND HE WIRED $10,000 FROM THE CUSTOMER'S ACCOUNT TO AN OUTSIDE BANK ACCOUNT BELONGING TO A COMPANY IN WHICH ANAND HAD A BUSINESS INTEREST. ANAND WIRED $24,000 FROM THE CUSTOMER'S ACCOUNT TO AN OUTSIDE BANK ACCOUNT BELONGING TO AN EMPLOYEE OF A BUSINESS OWNED BY ANAND'S RELATIVES AND WIRED $17,289 FROM THE CUSTOMER'S ACCOUNT TO AN OUTSIDE BANK ACCOUNT BELONGING TO A COMPANY THAT LEASED PROPERTY TO HIS RELATIVES' BUSINESS. ANAND ATTEMPTED TO WIRE $19,000 FROM THE CUSTOMER'S ACCOUNT TO THE EMPLOYEE OF HIS RELATIVES' BUSINESS AND $5,000 FROM THE CUSTOMER'S ACCOUNT TO ANAND'S COMPANY; AND THE FIRM COMPLETED NEITHER OF THOSE WIRES. THE CUSTOMER DID NOT AUTHORIZE AND HAD NO KNOWLEDGE OF ANY OF THE WIRES.
ANAND ALSO OPENED AN ACCOUNT AT THE FIRM IN THE NAME OF AN EMPLOYEE OF HIS RELATIVES' COMPANY; THE INDIVIDUAL DID NOT AUTHORIZE ANAND TO OPEN AN ACCOUNT AT THE FIRM AND DID NOT COMPLETE OR SIGN ANY NEW ACCOUNT OPENING DOCUMENTS. THE INDIVIDUAL'S ACCOUNT WAS FUNDED BY A LOAN IN THE AMOUNT OF $49,500 THAT WAS MADE AGAINST THE INDIVIDUAL'S 401(K) ACCOUNT, WHICH THE INDIVIDUAL HAD AS AN EMPLOYEE OF THE RELATIVES' BUSINESS. ANAND WIRED $21,000 FROM THE ACCOUNT TO AN OUTSIDE BANK ACCOUNT BELONGING TO HIS RELATIVES' BUSINESS AND WIRED $14,683 FROM THE ACCOUNT TO AN OUTSIDE BANK ACCOUNT BELONGING TO A COMPANY THAT LEASED PROPERTY TO HIS RELATIVES' BUSINESS. THE INDIVIDUAL DID NOT AUTHORIZE ANYONE TO TAKE A LOAN AGAINST HER 401(K) ACCOUNT AND DID NOT AUTHORIZE ANY OF THE WIRES. ANAND MISAPPROPRIATED MONEY AND FALSIFIED NEW ACCOUNT DOCUMENTS, THEREBY CAUSING HIS FIRM TO CREATE AND MAINTAIN INACCURATE BOOKS AND RECORDS. ANAND FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND FAILED TO APPEAR AND TESTIFY AS REQUESTED BY FINRA.
Resolution
Decision
Bar
Bar (Permanent)
Registration Capacities Affected
All Capacities
Duration
Indefinite
Start Date
7/22/2011
Regulator Statement
DEFAULT DECISION RENDERED JUNE 17, 2011 WHEREIN ANAND IS BARRED FOR MISAPPROPRIATION OF CUSTOMER FUNDS, IN VIOLATION OF NASD RULE 2330(A) AND FINRA RULE 2010. ANAND IS ALSO BARRED FOR MISAPPROPRIATION OF FUNDS FROM A NON-CUSTOMER AND CREATING FALSE BOOKS AND RECORDS, IN VIOLATION OF FINRA RULE 2010 AND NASD RULE 3110. ANAND IS FURTHER BARRED FOR FAILURE TO RESPOND TO REQUESTS FOR INFORMATION IN VIOLATION OF FINRA RULES 8210 AND 2010.
AMENDED DEFAULT DECISION RENDERED JUNE 24, 2011 WHEREIN ANAND IS BARRED FOR MISAPPROPRIATION OF CUSTOMER FUNDS, IN VIOLATION OF NASD RULE 2330(A) AND FINRA RULE 2010. ANAND IS ALSO BARRED FOR A SEPARATE MISAPPROPRIATION OF FUNDS FROM A NON-CUSTOMER AND CREATING FALSE BOOKS AND RECORDS THAT HE SUBMITTED TO HIS FIRM, IN VIOLATION OF NASD RULE 3110 AND FINRA RULE 2010. ANAND IS FURTHER BARRED FOR FAILURE TO RESPOND TO REQUESTS FOR INFORMATION IN VIOLATION OF FINRA RULES 8210 AND 2010. THE DECISION IS FINAL JULY 22, 2011.
