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Gopi Vungarala Investigated by FINRA

Gopi Vungarala According to records provided by the Financial Industry Regulatory Authority, Michigan-based Purshe Kaplan Sterling Investments broker/adviser Gopi Vungarala is under investigation for allegations involving he lied about investments and commissions. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Vungarala (CRD# 4856193).

Gopi Vungarala has spent eleven years in the securities industry and has been registered with Purshe Kaplan Sterling Investments in Midland, Michigan since 2007. He was previously registered with American General Securities Corporation in Midland, Michigan (2004-2007). He is a registered broker and investment adviser with two US states: Michigan and Texas.

According to his BrokerCheck report, Gopi Vungarala is the subject of one FINRA investigation.

In October 2015 Gopi Vungarala was named a respondent in a FINRA investigation based on allegations that he violated federal securities laws, and FINRA Rules. According to Investment News and FINRA’s complaint, Mr. Vungarala “regularly lied to his customer, a Native American tribe, regarding investments he recommended.” He allegedly “fraudulently induced the tribe to invest hundreds of millions of dollars in non-traded REITs and BDCs, without revealing he and his firm received commissions for the sales (usually 7%) or the availability of certain volume discounts.” The investments in question totaled $190.4 million in illiquid REITs and BDCs, for which the tribe was charged $11.4 million in commissions to Purshe Kaplan Sterling, from which Mr. Vungarala was paid $9.6 million, or 84.3%.

According to FINRA’s complaint, jointly filed against Purshe Kaplan Sterling, the tribe was overcharged $3.4 million in commissions. FINRA additionally alleges that Purshe Kaplan Sterling failed in its supervisory duties to detect and prevent Gopi Vungarala’s activities. The allegations listed in FINRA’s complaint include misrepresentation and omission of a material fact, failure to disclose that the client was eligible for volume discounts, failure to supervise Mr. Vungarala’s dual relationship with the tribe, and failure to supervise the sale of non-traded REITs and BDCs. The action remains pending.

If you or someone you know has a complaint regarding Gopi Vungarala or Purshe Kaplan Sterling Investments, call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.