Malay Kumar (CRD #2482909, Mason, Ohio)

November 30, 2023 – An AWC was issued in which Kumar was assessed a deferred fine of $10,000, suspended from association with any FINRA member in all capacities for 12 months, and ordered to pay $50,103.43, plus interest, in deferred restitution to customers. Without admitting or denying the findings, Kumar consented to the sanctions and to the entry of findings that he willfully violated Reg BI by recommending customers exchange variable annuities without reasonably considering the impact of the substantial surrender fees and the loss of benefits and liquidity caused by the exchanges. The findings stated that Kumar did not have a reasonable basis to believe his recommendations were suitable or in his customers’ best interest. Collectively, these exchange recommendations caused Kumar’s customers to incur $50,103.43 in surrender fees. The findings also stated that Kumar provided inaccurate information about the source of funds on the transaction documents he submitted to his member firm and the annuity issuers. Specifically, Kumar failed to identify and submit variable annuity purchases as exchanges even though each purchase was funded by the sale of another variable annuity. In doing so, Kumar caused his firm to create and maintain inaccurate books and records. The suspension is in effect from December 4, 2023, through December 3, 2024. (FINRA Case #2022077257801)