Atiq Urrehman Khan of Covina California a stockbroker formerly registered with Transamerica Financial Advisors Inc. has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that he failed to make an appearance for FINRA personnel during an investigation into Khan’s apparent improper solicitation of securities. Department of Enforcement v. Atiq U. Khan No. 2016052504602 (June 8, 2018).
FINRA Public Disclosure reveals that Transamerica discharged Khan on December 13, 2016, based upon accusations that Khan reached out to customers to solicit securities despite his activities having been prohibited by the firm.
However, if you read the actual Complaint, it states that Khan got busted putting himself as a beneficiary on “a” certain customer account.
Maybe it was his mother, maybe it was some 90 year old retail customer down the street in a nursing home with a bad flu.
We do not know. The Complaint stated that on August 21, 2017, according to FINRA Rule 8210, Khan was sent a letter from FINRA which called upon him to testify before FINRA personnel on September 8, 2017. Khan reportedly failed to respond to FINRA’s request of providing documentation to the regulator prior to making the scheduled appearance. Khan allegedly failed to testify on September 8, 2017.
The Complaint alleged that FINRA sent another request to Khan on September 25, 2017, asking him to testify on October 11, 2017. Apparently, Khan never responded to that request either, and failed to appear on October 11, 2017 to testify. Consequently, FINRA moved to suspend Khan’s registration according to FINRA Rule 9552.
The Complaint alleged that Khan was notified on November 2, 2017, that he would be suspended on November 27, 2017, as a result of failing to testify for FINRA on September 8, 2017 and October 11, 2017. Khan was suspended on November 27, 2017, and informed by FINRA at that time that he would be barred if he did not cooperate and request that his suspension be lifted.
The Complaint revealed that Khan eventually reached out to FINRA personnel on January 5, 2018, confirming that he received FINRA’s documentation. Khan was supposedly instructed by that time to testify on February 5, 2018, otherwise he would be barred. Khan testified for FINRA on January 25, 2018. He apparently averted a bar having been imposed at that time by FINRA personnel, but FINRA alleged that Khan’s untimely response was still violative of FINRA Rules 2010 and 8210.
The Complaint additionally alleged that Khan eventually failed to provide documentation and information to FINRA personnel. Particularly, once FINRA had terminated Khan’s suspension, it started another investigation into Khan’s securities solicitations and suspicious designation as beneficiary on a customer’s life insurance policy.
Khan apparently claimed that it was normal for him to have received the customer’s proceeds as beneficiary rather than the customers’ children, and that he ultimately provided funds to the customers’ children. Yet, he claimed that this took place through a bank account that Khan had access to and could withdrawal funds from. FINRA requested bank account documentation from Khan’s sister, listed as the apparent owner of the account, and imposed a due date of March 28, 2018.
The Complaint alleged that Khan failed to respond to FINRA’s request. Consequently, on April 3, 2018, FINRA sent another request for Khan’s bank account information which Khan was required to provide by April 17, 2018. Khan dodged that request as well. FINRA alleged that Khan’s failure to comply with its investigation was violative of FINRA Rules 2010 an 8210.
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