Local financial adviser’s license revoked
DENVER (Oct. 1, 2015) – A Colorado investment adviser’s license was revoked by consent order on Tuesday following an examination conducted by the Colorado Division of Securities, part of the Department of Regulatory Agencies (DORA). Vishwanath Shastry, the sole proprietor of an investment adviser business in Colorado, agreed to the issuance of the consent order by Securities Commissioner Gerald Rome.
According to the stipulation for consent order filed by the Division, routine examinations were conducted by Division auditors in 2010 and 2015 pursuant to the Colorado Securities Act. These audits found numerous deficiencies in the business’s operations, including a severe lack of record-keeping, lack of properly issued invoices, problems with discretionary measures, inadequate disclosures on business documents, and recommendation of unsuitable investments. The 2015 audit revealed Mr. Shastry’s failure to address the deficiencies identified in the earlier audit, even after the Division’s staff spent considerable time working with Mr. Shastry in 2010 to bring him into compliance.
“Our licensing program ensures that only those financial advisers who are deemed competent may provide financial advice to investors. Considering the similarity in violations this time around, particularly in light of the hard work by Division staff to help Mr. Shastry get his affairs in order back in 2010, I felt it was in the best interest of Colorado investors to revoke this license,” stated Commissioner Rome. “When investors place their hard-earned assets in the care of an adviser, they need to trust that those assets are being properly managed.”
Pursuant to the consent order, Mr. Shastry has acknowledged that he has entered into the stipulation voluntarily.
Division of Securities