David Khezri, of Hauppauge, New York, a stockbroker formerly registered with Network 1 Financial Securities Inc. and Worden Capital Management LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he hindered a FINRA investigation into accusations of his unsuitable investment advice to investors. Letter of Acceptance, Waiver, and Consent No. 2021070381701 (December 23, 2021).

According to the AWC, on November 3, 2021, Khezri was asked by FINRA to hand over information and documents so that FINRA could identify if he made unsuitable recommendations to customers. The AWC states that FINRA received a phone call from Khezri’s lawyer on November 16, 2021. The lawyer relayed that Khezri received FINRA’s request and would not comply with it at any time. Khezri refused to submit the requested information and documents, violating FINRA Rules 2010 and 8210.

This is not the first time that Khezri has been sanctioned by FINRA. He has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Khezri effected unauthorized trades in customer accounts when he was registered with Cape Securities. Letter of Acceptance, Waiver, and Consent No. 2015044589701 (September 24, 2015).

According to the AWC, Khezri executed trades in six customers’ accounts without having written authorization from customers for discretionary trading and without having Cape Securities’ permission for discretionary trading. Khezri was not allowed to exercise discretion because he was not a registered investment advisor representative. Khezri violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).

Khezri has been identified in three customer initiated investment related disputes concerning allegations of his harmful activities. FINRA Public Disclosure shows that a customer filed an investment related complaint concerning Khezri’s activities where the customer sought $49,000.00 in damages supported by accusations of Khezri’s excessive trading of over-the-counter equities during the time that he was employed by Milestone Financial Securities Inc.

Khezri is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $235,635.00 in damages founded on allegations of negligence and breach of fiduciary duty while Khezri was associated with Joseph Stone Capital. FINRA Arbitration No. 19-03741 (March 6, 2020). The claim alleges Joseph Stone Capital’s failure to supervise Khezri’s stock and over-the-counter equities trades.

On March 15, 2021, another customer filed an investment related FINRA securities arbitration claim involving Khezri’s conduct where the customer sought $187,000.00 in damages based upon accusations of churning and fraud relating to Khezri’s real estate investment trusts and over-the-counter equities transactions. FINRA Arbitration No. 20-04169. The claim alleges negligence, breach of contract, breach of fiduciary duty, and violation of federal and state securities laws.

Khezri was registered with Worden Capital Management between June 12, 2017, and March 10, 2020. He was registered with Network 1 Financial Securities between March 10, 2020, and August 6, 2021.

Tags: ,

Comments are closed.