Kabir Gangahar Involved in Nebraska and SEC Regulatory Actions

Kabir Gangahar (CRD #: 4280828), a broker formerly registered with KMS Financial Services, has been suspended by the SEC, according to his BrokerCheck record, accessed on November 7, 2024. Keep reading if you have questions about his alleged conduct as a broker.

Nebraska Regulatory Action

On October 16, 2024, the Nebraska Department of Banking and Finance filed a regulatory action alleging that Kabir Gangahar and Gemini Capital Partners engaged in a cherry picking scheme in violation of Section 202 of the Investment Advisers Act of 1940.

The Department suspended Kabir Gangahar on October 16, 2024, until the resolution of a pending Order to Show Cause.

SEC Regulatory Action

On September 30, 2024, the Securities and Exchange Commission initiated a regulatory action against Kabir Gangahar and Gemini Capital Partners, the investment advisory firm where Kabir Gangahar was allegedly the control person and majority owner.

The SEC alleged that, from January 2020 through December 2022, Kabir Gangahar disproportionately allocated profitable trades to himself and Gemini Capital Partners. This allegedly breached the firm’s policy regarding trade allocation, and both the firm and Kabir Gangahar allegedly breached their fiduciary duties.

The SEC concluded that this alleged misconduct violated Section 206(2) of the Investment Advisers Act.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Sanctions

The SEC ordered Kabir Gangahar and Gemini Capital Partners to cease and desist from violations of Section 206(2) of the Investment Advisers Act and imposed the following monetary sanctions:

• Disgorgement of $130,322
• Penalty of $22,803.30

Kabir Gangahar was also suspended from associating with the following for 12 months:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSRO)

His suspension began on October 14, 2024, and will end on October 13, 2025.

SEC Investigation

On May 14, 2024, the SEC launched an investigation into Kabir Gangahar and Gemini Capital Partners that concluded with a preliminary determination to recommend an enforcement action alleging violations of the following securities laws:

• Section 17(a) of the Securities Act of 1933
• Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
• Sections 206(1) and 206(2) of the Investment Advisers Act of 1940

Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits the use of deceptive and fraudulent schemes in the securities business. It specifically bans false or misleading statements and the omission of material facts relating to securities.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 extends this to include fraudulent schemes, untrue statements and omissions of fact.

Background Information

Kabir Gangahar has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• KMS Financial Services (CRD#:3866)
• United Planners’ Financial Services of America (CRD#:20804)
• BrokersXpress (CRD#:127081)
• Wells Fargo Advisors (CRD#:19616)
• Wells Fargo Investments (CRD#:10582)
• Raymond James Financial Services (CRD#:6694)
• Salomon Smith Barney (CRD#:7059)

Kurta Law Can Help

If you worked with Kabir Gangahar and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.