Sign of the Financial Industry Regulatory Authority

Chams Khwaja (also known as Sean Khwaja) of Melville New York a stockbroker formerly registered with Worden Capital Management LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a Default Decision containing findings that Khwaja declined to cooperate with FINRA’s investigation into allegations of his undisclosed outside business activities during the time that he was associated with Worden Capital Management. Department of Enforcement v. Chams Khwaja Disciplinary Proceeding No. 2019063626701 (July 24, 2020).

According to the Decision, in August of 2019, the regulator commenced an investigation into another  FINRA registered stockbroker’s activities at Worden Capital Management during the same time that Khwaja was employed by the securities broker dealer. FINRA discovered that the stockbroker was related to Khwaja and had engaged in securities business using Khwaja’s office space. FINRA learned about Khwaja possibly engaging in outside business activities which had not been disclosed to Worden Capital Management.

The Decision stated that the stockbroker failed to inform his securities broker dealer employer about two companies that he was involved with as outside business activities. The regulator obtained information which indicated that Khwaja was involved with those companies. FINRA also obtained testimony from that stockbroker which revealed that Khwaja engaged in those activities during and after his association with Worden Capital Management.

Khwaja was asked to provide documentation and information to FINRA according to a January 15, 2020 request. He was told to provide a description of the business activities that he engaged in with respect to those two companies. The Decision stated that there was nothing provided to FINRA by Khwaja in response. Khwaja was sent additional requests from FINRA which went unanswered. This precluded FINRA from determining Khwaja’s involvement with those two companies and the veracity of the other stockbroker’s statements about Khwaja’s activities.

Khwaja failed to respond to Department of Enforcement’s Complaint which resulted in FINRA’s Office of Hearing Officer’s Default Decision finding the stockbroker in violation of FINRA Rules 2010 and 8210. He was barred from the securities industry.

Khwaja was associated with Worden Capital Management between February 7, 2018 and April 27, 2018.