David Khezri of Holbrook New York a stockbroker formerly employed by Joseph Stone Capital LLC has been identified in a customer initiated investment related arbitration claim where the customer sought $235,635.00 in damages founded on accusations of negligence and the breach of a fiduciary duty by Khezri as it pertained to stock trades executed in the customer’s Joseph Stone Capital account. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03741 (Mar. 6, 2020).
This is not the first time that Khezri has been accused of misconduct by an investor. FINRA Public Disclosure indicates that Khezri has also been referenced in a customer initiated investment related complaint in which the customer requested $49,000.00 in damages supported by allegations that over-the-counter equities transactions were executed in the customer’s account on an excessive basis during the period in which the stockbroker was employed by Milestone Financial Securities Inc.
Khezri has also been sanctioned twice by securities regulators. He was fined $5,000.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that unauthorized transactions were effected in customers’ accounts. Letter of Acceptance Waiver and Consent No. 2015044589701 (Sept. 24, 2015). According to the AWC, discretion was exercised by Khezri in the account of six Cape Securities customer accounts. Khezri not only lacked written authorization from customers but also failed to ensure that the customers’ accounts were labeled as discretionary by Cape Securities. FINRA determined that Khezri was not allowed to execute transactions in customer accounts on a discretionary basis. He violated FINRA Rules 2010 and 2150(b).
Khezri’s registration with Joseph Stone Capital has been terminated as of July 6, 2017. Between June 12, 2017 and March 20, 2020, he was registered with Worden Capital Management. On March 10, 2020, the stockbroker became associated with Network 1 Financial Securities Inc. FINRA Public Disclosure reveals that Khezri has been associated with at least five different securities broker dealers who have been expelled for violation of federal securities laws or are otherwise defunct.
