Home News FINRA Fines and Suspends Former NYLife Broker for Selling Unapproved Securities

FINRA Fines and Suspends Former NYLife Broker for Selling Unapproved Securities

The Financial Industry Regulatory Authority has fined and suspended a former NYLife Securities broker for allegedly soliciting two investors to purchase securities in Future Income Payments LLC.

The Financial Industry Regulatory Authority has fined and suspended a former NYLife Securities broker for allegedly soliciting two investors to purchase securities in Future Income Payments LLC, which was recently charged, along with its owner, with conspiracy to engage in mail and wire fraud.

According to a letter of acceptance waiver and consent issued by FINRA, Neemit M. Shah purportedly engaged in two undisclosed and unapproved private securities transactions in Future Income Payments.

Future Income Payments represented itself as a structured cash flow investment, claiming to purchase pensions at a discount from pensioners and then selling a portion of those pensions as a “pension stream” to investors. The investment generally promised rates of return of between 7 percent and 8 percent.

Shah is accused of selling $408,000 in Future Income Payments securities to two investors, both of whom were NYLife customers, and received a total of $8,160 in commissions.

NYLife Securities prohibits its registered representatives from participating in private securities transactions without prior written approval. FINRA claims that Shah did not seek approval from the broker-dealer and made one false attestation that he did not participate in the transactions.

In April 2018, Future Income Payments ceased business, owing nearly $300 million in unpaid payments to its investors. In a March 2019 indictment, the United States charged the company and its owner, Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to its operations.

Without admitting or denying the allegations, Shah agreed to a six-month suspension and $5,000 fine.

After NYLife, Shah was briefly affiliated with MML Investors Services and Northwestern Mutual Investment Services but is not currently affiliated with any firm. He does not have any disciplinary history with the Securities and Exchange Commission, any state securities regulators, FINRA, or any other self-regulatory organization.

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