Sumitro Pal (CRD# 4763364) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of Bethesda, MD, where he was registered from 2009-2018. Pal has worked in the securities industry since 2004.
Currently, Pal is the subject of four pending customer disputes, filed between November 2018 and November 2020, which allege damages totaling $1,575,000. Investors’ allegations range from “selling away” to “unsuitability” and “misappropriation of funds for an outside investment.” The dates of the alleged actions range from October 2007 through September 2018.
Two previous customer disputes were settled for a total of $3,625,000.00. The most recent dispute was filed on 5/4/2018, and alleged, “inter alia, Misappropriation of funds for an outside investment – Oct 2017 to Feb 2018.” This claim was settled for $2,500,000.00. The earlier claim was filed 9/26/2017 and had similar allegations that “the FA invested his retirement money in high risk corporate bonds including an over-concentration of bonds in the energy sector and also that the FA misrepresented the losses of his investments. 01/01/2013-08/31/2017.” This claim was settled for $112,500.00.
Many Complaints Allege Pal Engaged In “Selling Away”
“Selling away” is an industry term for a type of financial misconduct wherein brokers funnel their customers’ money into their own pockets by “recommending” purported investments that are not registered with the SEC or any other regulatory body. These unregistered investments are neither registered nor approved by the broker’s employing firm. Moreover, these unregistered investments are often illegitimate or entirely fake business ventures and/or Ponzi schemes designed solely to enrich the broker or some other fraudster.
Brokerage firms such as Morgan Stanley have a responsibility to supervise their representatives so as to prevent “selling away” of the type described in complaints against Pal. This includes taking steps to ensure that registered representatives like Pal follow all securities rules and regulations as well as internal policies and procedures. Failure to uphold these standards could render the brokerage firm liable for the losses suffered by customers.
Did You Invest With Sumitro Pal?
Before investing, it is important to ask questions, conduct diligent research, read audited financials, and read materials submitted to or filed with state and federal securities regulators. Retail investors should be weary of promises from brokers that complex, private investments will generate guaranteed and/or above-the-market returns. This is especially true if an investor is preparing to invest a substantial amount of their savings, as it appears was the case for many of Pal’s customers, who now allege multi-million dollar losses.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.