Kabir Gangahar, Gemini Adviser, Suspended by SEC
Kabir Gangahar (CRD# 4280828), an investment adviser registered with Gemini Capital Partners, cherry-picked investments, according to an administrative proceeding. MDF Law is investigating the Omaha, Nebraska-based financial professional for similar conduct. Current or former clients with concerns about their portfolios should call our office for a free consultation.
More information about Mr. Gangahar’s professional history is available below. This post is sourced from a November 22, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record. It also relies on a review of his Investment Adviser Public Disclosure, a Securities and Exchange Commission record.
SEC Announced Sanction in September 2024
On September 30, 2024, the SEC announced an administrative proceeding against Mr. Gangahar. According to a release by the agency, it settled charges with Mr. Gangahar and his investment adviser firm, Gemini Capital Partners. The order alleged that between 2020 and 2022, he and the firm “often allocated block trades among advisory clients and themselves at or near the end of the trading day.” Then, he allegedly allocated profitable trades to his and the firm’s accounts more than to client accounts. He therefore “achieved a return on these trades that was more than double what participatory advisory clients achieved,” according to the SEC. This practice is colloquially known as “cherry-picking.”
SEC: Gangahar Violated Policy, Breached Duty
The SEC concluded that Mr. Gangahar’s alleged trading activities constituted a breach of his fiduciary duties. It also found that his conduct violated “Gemini’s disclosed policy of allocating trades on a pro rata basis.” In light of these charges, Mr. Gangahar agreed to pay disgorgement of $130,322. The firm, meanwhile, agreed to pay disgorgement of $122,602. Mr. Gangahar also consented to 12-month suspension from acting as a broker or an investment adviser.
Nebraska Suspended Adviser Following SEC Sanction
The above-described SEC sanction is not the only disciplinary action in Mr. Gangahar’s past. On October 16, 2024, the Nebraska Department of Banking and Finance issued an order suspending him. This order stemmed from allegations that he “willfully violated Section 202 of the Investment Advisers Act of 1940 by engaging in a cherry picking scheme.” More than a decade earlier, in 2012, FINRA sanctioned him following allegations that he improperly exercised discretion in customer accounts. In this case, the regulator censured him and ordered him to pay a fine of $10,000.
FINRA: Kabir Gangahar Based in Omaha, Nebraska
Mr. Gangahar launched his career as a broker in 2000. That year, he registered with Salomon Smith Barney’s office in New York City. Over the following years, he worked at firms including Raymond James Financial, Wells Fargo Advisors, and KMS Financial Services. He joined Gemini Capital Partners in 2019, according to his BrokerCheck profile, and is based at its office in Omaha, Nebraska. With 23 years of experience as an investment adviser, he has completed four industry exams, including the Series 65 and the Series 7.
Investors Have Rights. MDF Law Defends Them
MDF Law’s team of seasoned investor advocates have recovered millions in investment losses for the victims of broker fraud. We accept cases on contingency, meaning you only pay a fee if you win your case—no hourly fees. We offer free consultations to investors across the US. If you lost money working with Kabir Gangahar, call 800-767-8040 to speak with an attorney today.