Nas Adel Allan of New York New York a stockbroker formerly registered with Meyers Associates L.P. (now known as Windsor Street Capital LP) has been fined $2,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a FINRA Office of Hearing Officers Order Accepting Offer of Settlement containing findings that Allan made unsuitable investment recommendations to customers. Department of Enforcement v. Nas Adel Allan Disciplinary Proceeding No. 2015046971701 (May 9, 2018).
According to the Order, during the time that Allan was associated with Meyers Associates, Allan made recommendations for married customers DR and IR to effect short-term trades of a security that had been held by the couple for over three decades.
Evidently, in September of 2014, DR and IR had been advised by Allan that $191,000.00 worth of Huntington Bancshares, Inc. stock should be liquidated from the customer’s trust account. The customers executed the liquidation based upon Allan’s advice, causing the customers to sustain a $15,000.00 capital gains tax. The Order stated that Allan recommended a week later that the trust re-purchase the Huntington Bancshares, Inc. stock.
The Order revealed that in October of 2014, DR and IR were again advised to sell the Huntington Bancshares, Inc. stock from their trust account, where the shares were sold at a lower price than the price that they had been re-purchased in September 2014. Allan reportedly recommended two weeks later that DR and IR buy Huntington Bancshares, Inc. stock shares, where the purchase price exceeded the price that the shares had recently been sold. Ultimately, throughout this period, DR and IR had been charged markups and markdowns totaling $22,000.00.
FINRA stated that Allans’ recommendations were inappropriate for DR and IR based upon the transactions failing to conform to the customers’ investment profiles. Moreover, FINRA concluded that the transactions did not make any sense from an economic perspective and merely caused the customers to sustain undue tax liabilities and losses. Consequently, FINRA found Allan’s conduct to be violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that Allan is referenced in two customer initiated investment related disputes pertaining to allegations of Allan’s wrongdoing during the time that he was employed by Meyers Associates LP. Particularly, on June 16, 2004, a customer initiated investment related complaint concerning Allan’s conduct was resolved for $10,066.00 in damages based upon accusations that Allan neglected to execute a stop loss order on the customer’s equity holdings. Subsequently, a customer initiated investment related arbitration claim involving Allan’s activities was settled for $40,000.00 in damages supported by allegations that unsuitable investment recommendations had been made to the customer concerning over-the-counter equities transactions placed in the customer’s account. FINRA Arbitration No. 17-00943 (Apr. 30, 2018).
Allan has been registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated since December 9, 2015. Since July 23, 2002, he has been associated with eleven different broker dealers, eight of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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