Massachusetts' top securities regulator, William Galvin, has ordered a former Investors Capital Corp. broker and advisor rep, Nick Palky, to return more than $250,000 to a client's account after Palky used forged checks to steal the client's money.
Galvin's Securities Division opened an investigation into Palky, a former Woburn resident previously known as Nikhil Palkhiwala, after receiving a complaint.
Palky was registered as a broker-dealer from 1987 to 2015, most recently with Investors Capital Corp., which was closed in 2016 after being acquired by Cetera.
"In the course of the investigation, Palky admitted to stealing nearly $250,000 from his client, over a period of several months in 2016," according to a statement from Galvin's office.
After misappropriating his client's funds, Palky moved from Massachusetts to California, where Galvin's office alleges "he has lived off the stolen money."
In 2018, Palky moved to Simi Valley, California, "where he purchased a home in cash," the consent order states. "Palky has had no sources of income. Instead, Palky uses the client's funds and any associated investment gains from these funds to pay for all his basic living expenses."
