Ex-Smith Barney adviser admits to $3M fraud scheme

Sanjeev Jayant Kumar Shah, a former adviser at Smith Barney, pleaded guilty today to defrauding clients of more than $3 million, prosecutors said.
NOV 26, 2010
By  Mark Bruno
Sanjeev Jayant Kumar Shah, a former adviser at Smith Barney, pleaded guilty to defrauding clients of more than $3 million, prosecutors said. Shah entered his plea Wednesday in Manhattan federal court. He admitted fabricating and e-mailing documents purporting to be from a foreign bank authorizing a transfer of $3.2 million from its Smith Barney account and into another bank’s account, prosecutors said. Shah told representatives of the foreign bank, which isn’t named, that he transferred the funds to buy bonds, they said. Shah, 35, who lives in New York, pleaded guilty to wire fraud and securities fraud. He’s scheduled to be sentenced on Feb. 24. Defense attorney Edward Little didn’t immediately return a phone call for comment. Smith Barney is a unit of Citigroup Inc. “Citi brought this matter to the attention of the Department of Justice,” the New York-based bank said in a statement. “We are pleased this matter is now resolved.” The case is U.S. v. Shah, 10-cr-1169, U.S. District Court, Southern District of New York (Manhattan).

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.