Atiq Urrehman Khan (also known as Daniel Khan) of Covina California a stockbroker formerly employed by Transamerica Financial Advisors Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon Khan’s consent to findings that he obstructed a FINRA investigation into allegations of his unapproved solicitation of securities products. Department of Enforcement v. Atiq U. Khan Disciplinary Proceeding No. 2016052504602 (Sept. 27, 2018).
According to the Decision, FINRA launched an investigation into Khan’s activities when it obtained a Uniform Termination Notice for Securities Industry Registration (Form U5) from Transamerica, which disclosed the reason for Khan’s termination. Transamerica reported that Khan violated the firm’s procedures by soliciting customers of Transamerica to buy securities, and he inappropriately designated himself as one customer’s beneficiary.
The Decision stated that in August 2017, Khan was sent a letter from FINRA seeking Khan’s testimony on September 8, 2017. Kahn evidently failed to show up for testimony. Evidently, Khan was sent another letter from FINRA on September 25, 2017; however, Khan failed to make the scheduled October 11, 2017 appearance for testimony.
Khan was then provided FINRA’s Suspension Notice, confirming that he was suspended by FINRA in all capacities and would be barred if his request to terminate the suspension was not submitted by February 5, 2018. Khan eventually communicated with FINRA, appearing for testimony on January 25, 2018. Khan’s cooperation in this respect allowed his suspension to be lifted.
However, FINRA continued its investigation, sending Khan a March 14, 2018 letter stating that Khan’s sister’s accounts statements needed to be provided to FINRA for their review. Khan apparently failed to provide those documents by the March 28, 2018 deadline. Khan reportedly failed to respond to another document request made by FINRA on April 3, 2018. FINRA found that the information sought by investigators was significant in determining Khan’s misconduct concerning a customer’s life insurance policy. FINRA’s investigation was apparently unable to be concluded because of Khan’s failure to provide FINRA a response.
FINRA Department of Enforcement then charged Khan in a Complaint alleging that he violated FINRA Rules 2010 and 8210 for failing to timely respond to FINRA and for failing to provide the documents requested by FINRA. Khan apparently failed to provide an Answer by the July 6, 2018 deadline. FINRA’s Hearing Officer concluded that Khan was in default, found him to have violated FINRA Rules 2010 and 8210, and barred him in all capacities as a result.
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