Pratul Agnihotri, Broker with SW Financial, Suspended and Fined Over Alleged Outside Business Activities

Agnihotri is accused of improperly using customer funds that were provided for company-related business expenses.

The Sonn Law Group is investigating allegations that Praturl Agnihotri engaged in undisclosed outside business activities. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Pratul Agnihotri (CRD#: 4031797) is currently registered as a broker with SW Financial in Melville, New York, where he has been employed since July 2019. 

Without admitting or denying the findings, Agnihotri consented to sanctions imposed by FINRA and to the entry of findings that he engaged in an outside business activity without providing prior written notice to either of his member firms. 

FINRA’s findings stated that Agnihotri formed and became the chief executive officer (CEO) of a company that purportedly sold an exercise apparatus. On one of the firm’s annual compliance attestations, Agnihotri falsely replied “no” to the question of whether he maintained any outside business activities. The findings also stated that Agnihotri improperly used funds received from a firm customer intended to be used for purposes related to the company.

Agnihotri received an $8,000 check from the customer. Although Agnihotri did not provide the customer with any written documentation indicating how the customer’s funds were to be used, Agnihotri and the customer both understood that the funds would be used for company-related business expenses. The scope of the business expenses or the specific expenses for which the funds would be used, however, were not delineated. Agnihotri deposited the customer’s check into the company bank account, which Agnihotri controlled.

Agnihotri used approximately $919 of this amount to pay expenses that he characterized as related to the company’s business, but the customer disagreed with that characterization. Agnihotri later repaid the customer the entire $8,000.

Agnihotri was fined $7,500 and suspended for a period of 12 months. Agnihotri has four other disclosures on his BrokerCheck report.

October 2019 Customer Dispute

• Status: Pending
• Allegations: Time Frame: December 2013 to present. Claimant alleges unauthorized trading, failure to follow instructions, negligence, selling away, breach of fiduciary duty.
• Damage Amount Requested: $650,000.00

October 2010 Customer Dispute

• Status: Closed-No Action
• Allegations: Unauthorized trading, excessive commissions
• Damage Amount Requested: $5,000.00
• Broke Comment: Customer is a sophisticated and experienced investor who is now trying to reinvent the past in order to recoup losses sustained in his account – losses stemming from transactions which were authorized by the customer and which comported with his risk tolerance, investment objective and net worth. Aegis responded to the customer in November 2010. The firm has not received any contact from the client since and considers this matter closed.

March 2007 Judgment / Lien

• Judgment / Lien Amount: $4,010.00
• Judgment / Lien Type: Civil
• Broker Comment: Applicant has reached out in order to set up a payment plan.

February 2005 Customer Dispute

• Status: Settled
• Allegations: Client alleges unauthorized trades
• Damage Amount Requested: $9,411.60
• Settlement Amount: $7,300.00

Contact Us Today

The Sonn Law Group is currently investigating allegations that Praturl Agnihotri engaged in undisclosed outside business activities. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.