According to FINRA, Tejinder Singh of Half Moon Bay, California was named as a respondent in a FINRA complaint alleging that he refused to provide documents and appear for testimony during an investigation into whether he made material misrepresentations to obtain a Paycheck Protection Program (PPP) loan.

This is a complaint—an allegation—and no findings have been made. Singh is presumed innocent unless the charges are proven.

The complaint alleges that Singh obtained a $38,541 PPP loan on behalf of a company, with the loan proceeds passing through his member firm. Singh provided a declaration to FINRA stating the loan was to pay payroll costs (the cost of his services), health care benefits, and rent.

However, the complaint alleges this declaration was inconsistent with public records indicating the PPP loan was obtained to retain three jobs—suggesting the loan may have been obtained under false pretenses.

FINRA sought bank and brokerage account statements and tax returns to investigate whether Singh made misrepresentations in applying for the PPP loan and whether he timely disclosed the company as an outside business activity on his Form U4. Singh allegedly failed to produce these documents or appear for testimony.

The PPP was a federal program designed to help businesses retain employees during the COVID-19 pandemic. Obtaining PPP funds through misrepresentation constitutes fraud against the federal government.

For investors, this case demonstrates that FINRA investigates a broad range of potential misconduct by registered persons, including conduct that may constitute fraud in other contexts. The charges are allegations that have not been proven.