Shailesh N. Negandhi (Suwanee, GA) – Recent Investigation and Investor Alert
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Haselkorn & Thibaut, a national securities fraud law firm, has opened an investigation into financial advisor Shailesh N. Negandhi—formerly of UBS Financial Services Inc. and currently with FourStar Wealth Advisors, LLC in Suwanee, GA. If you are an investor who has concerns or believes you may have sustained losses with Mr. Negandhi, this report can help you understand the key background information, recent regulatory actions, and your potential recovery options.
At-a-Glance: Shailesh N. Negandhi’s Professional Background
| Field | Value |
|---|---|
| Name of Advisor | Shailesh N. Negandhi |
| CRD Number | 4897340 |
| Current Affiliation | FourStar Wealth Advisors, LLC (Investment Adviser Representative) |
| Former Broker-Dealer | UBS Financial Services Inc. (Discharged 03/2022) |
| Business Location | Suwanee, GA |
| Prior Firms |
UBS Financial Services Inc. (Plano, TX) Morgan Stanley (Dallas, TX) Citigroup Global Markets, Inc. (Dallas, TX) |
Detailed Background: Why Haselkorn & Thibaut Is Investigating
Investors trust financial advisors to recommend suitable strategies and be candid about investment risks. Regulatory and employment history show that Shailesh N. Negandhi (also known as Shailesh Narottam Negandhi or Shai N Negandni) has accumulated decisions and customer disputes that are significant for current and former clients to review.
Haselkorn & Thibaut’s experienced team—boasting a 98% success rate and over 50 years of combined securities law experience—has taken interest in Negandhi’s recent regulatory activity and customer complaint history, especially related to complex investment strategies and account handling practices.
Overview of Complaints and Disclosures
-
Customer Dispute (UBS Financial Services Inc.)
• In 2020, a customer (during Negandhi’s time at UBS Financial Services Inc.) filed a complaint in FINRA arbitration (Case No. 20-01973) alleging that Negandhi had made unsuitable recommendations and misrepresented the nature and risk of investments in an options overlay strategy—specifically, the UBS Yield Enhancement Strategy (“YES”).
• The complaint focused on a strategy touted as low-risk (“Iron Corridor” type), but customers alleged it actually involved significant and under-disclosed risk. Clients felt misinformed about the asymmetrical risk/reward structure.
• Resolution: Settled in May 2022 for $350,000. -
Regulatory Action (Texas State Securities Board – TSSB)
• In August 2024, the Texas State Securities Board issued a Final Order (REG-24-SUS-07) reprimanding and suspending Negandhi for 3 months in his capacity as an investment adviser representative (suspension effective 8/16/2024 to 11/16/2024).
• The TSSB found Negandhi engaged in a pattern of short-term trading in closed-end funds, without a reasonable basis and contrary to firm policy. This was deemed to violate reasonable-basis and customer-specific suitability rules designed to protect investors. -
Employment Termination (UBS Financial Services Inc.)
• On March 24, 2022, Negandhi was discharged from UBS Financial Services Inc..
• The reason cited was violations of firm policies regarding suitability and investment handling.
Potential Red Flags for Investors
- Options Overlay Strategies Misrepresented: The YES program at UBS was marketed as conservative but, in fact, involved complex and potentially high-risk trading that many investors may not have fully understood.
- Short-Term Trading Issues: Regulators found patterns of investment recommendations inconsistent with sound and customer-appropriate strategies.
- Internal Policy Violations: Review and subsequent discharge by a major financial firm due to failure to follow its own guidance demonstrates serious internal concern.
- Regulatory Suspension & Reprimand: Action by a state regulator is a direct warning sign about the advisor’s practices.
How to Check Advisor Records Yourself
- Visit FINRA’s BrokerCheck and enter “Shailesh N. Negandhi” or his CRD number 4897340.
- Review “Employment History,” “Disclosures,” and “Registration History” for the most current data.
- For deeper investigation, check “Disclosure Information,” state securities boards, and PACER for litigation outside securities arbitration.
Checking these independent resources should be part of every investor’s diligence before making important decisions.
Summary Table: Key Complaints and Actions
| Date | Type of Action | Details | Status / Outcome |
|---|---|---|---|
| 2020 | Customer Dispute (FINRA Arbitration) | Alleged unsuitability & misrepresentation of UBS YES options strategy | Settled May 2022 for $350,000 |
| 08/2024 | Regulatory (TSSB Suspension) | Short-term trading in closed-end funds; violation of suitability and firm policy | Reprimand & 3-month suspension (8/16/2024–11/16/2024) |
| 03/2022 | Employment Termination | Discharged from UBS Financial Services Inc. for policy violations | Terminated 03/24/2022 |
Recent Status: No Current New Disclosures
As of the last accessible public records, there are no new customer complaints, regulatory actions, bankruptcies, or civil disputes beyond those outlined above. It is wise for investors considering business with any advisor to verify this information periodically, as records can change quickly. For the latest information, always double-check BrokerCheck and relevant regulator databases.
Have You Lost Money with Shailesh N. Negandhi?
If you were a client of Shailesh N. Negandhi, especially during his time at UBS Financial Services Inc., and have concerns about the suitability of your investments or have experienced unexpected losses, you may have options to pursue recovery via FINRA arbitration or other mechanisms. Investors impacted by issues such as unsuitable options trading, misrepresentation of risks, or short-term trading strategies not aligned with their objectives should act promptly to explore their rights.
