The Financial Industry Regulatory Authority (“FINRA”) has barred former T3 Trading Group stockbroker Suresh Kumar, of Mission, Kansas, from ever working or associating as a FINRA registered broker in all capacities. Kumar consented to the sanction for the entry of FINRA’s findings that he made material misrepresentations to clients regarding why he could not repay their funds. Kumar worked as a stockbroker at Echotrade LLC from 2009 to 2013 then moved to T3 Trading Group, LLC from 2013 to 2020, according to his FINRA BrokerCheck report.

FINRA’s Findings Against Suresh Kumar

According to FINRA, Kumar operated an undisclosed outside business activity where he received hundreds of thousands of dollars from clients who thought he was a registered stockbroker working for and through an official brokerage firm.

Through various verbal and written agreements, Kumar convinced participants to sign up and pay for a course where he would train them on how to pass the Series 57 exam, how to trade securities as part of his purported team at his member firm and thus double the value of their original investments.

As part of the deal, the participants had to make an initial deposit before training began as a contingency. Contingency funds are a reserve of money set aside to cover upfront expenses. The participants were told they had the option to receive a refund if they chose in the first three months.

One participant requested his $48,000 contingency fund be refunded after he failed the exam and decided not to continue training with Kumar. However, Kumar, despite his contractual obligations, did not return the client his funds. According to FINRA, Kumar falsely told the client that the firm held $100 million of Kumar’s money and that he could not repay the client until the firm released Kumar’s funds.

At the time he made these statements, Kumar only had $2,500 with the firm because he had previously spent his participant’s contingency funds on repaying a personal loan and other personal expenses. Kumar had no other sources of money to repay these clients.

Additionally, even though this operation began before he was registered with FINRA, the firm Kumar worked at, T3 Trading Group, LLC, had no idea about the training operation Kumar was running because he failed to disclose it to them. Kumar also failed to disclose to his firm that he executed around 100 private securities transactions in brokerage accounts that he held outside of the firm.

Suresh Kumar Failed to Notify His Firm

Kumar made a statement to his firm denying that he operated an outside business or engaged in unapproved methods of electronic communications or private securities transactions. Kumar also refused to answer questions about deals he entered that he did not have the ability to repay.

FINRA Sanctions Suresh Kumar

FINRA determined that Kumar made false and misleading statements and promises to his clients based on his answers to their investigations. Kumar also failed to turn over the electronic communication information that FINRA requested and instead deleted his communications with clients.

Further, FINRA found that Kumar failed to identify an overseas bank account he controlled until more than nine months after the original request. Thus, based on the investigation of the customer-initiated complaint, FINRA has barred Suresh Kumar from associating with FINRA as a stockbroker.