Sam Aziz (also known as Sam Yehya and Sam Azizieh) of Dublin Ohio a stockbroker formerly registered with Costal Equities Inc. and David A. Noyes Company has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Aziz failed to cooperate with FINRA in an investigation into his (1) bad advice concerning customer’s margin use (2) trading in customer accounts on an excessive basis (3) settling of a customer’s complaint away from the firm and (4) unauthorized communications with customers regarding investments. Letter of Acceptance, Waiver and Consent No. 1721932 (Mar. 27, 2019).
According to the AWC, Aziz’s sales practices at both David A. Noyes and Coastal Equities Inc. became the focal point of FINRA’s investigation. Apparently, FINRA learned that on October 25, 2018, Aziz had been discharged from David A. Noyes founded on accusations that Aziz was subject of an investigation for possible misconduct; and received a FINRA Wells Notice which confirmed FINRA’s initiation of an investigation and plans to recommend that formal disciplinary action be taken against Aziz. Evidently, FINRA sought information into Aziz possibly making unsuitable recommendations; excessively trading; settling a customer’s complaint outside the firm’s auspices; and using unapproved accounts to correspond with customers.
The AWC stated that on March 5, 2019, a request was made by FINRA under Rule 8210 for Aziz to provide recorded testimony about his activities. However, Aziz’s counsel reported to FINRA two weeks later that Aziz understood the nature of FINRA’s request and would at no point be cooperating in the investigation. Ultimately, FINRA found Aziz’s conduct violative of FINRA Rules 2010 and 8210.
This is not the first time that Aziz has been subject of a regulatory action concerning his misconduct. In particular, on January 25, 2019, Aziz was subject of an Ohio Department of Commerce Division of Securities Notice of Intent To Suspend Or Revoke Aziz’s Investment Adviser Representative License and Salesperson License ant Notice of Intent to Issue a Cease and Desist Order supported by allegations that Aziz traded in a customer’s account without authorization; breached a fiduciary obligation to the customer; placed the customer in inappropriate investments; churned the customer’s account; made misrepresentations concerning investments; and defrauded Ohio residents. In the matter of Sam Aziz Order No. 19-006 (Jan. 25, 2019).
According to the Notice, from September of 2015 to May of 2018, the accounts owned by twelve of Aziz’s clients had been excessively traded. Allegedly, Aziz traded excessively in at least eleven elderly customers’ accounts, which enabled Aziz to generate a minimum of $2,400,000.00 in commissions. This conduct was viewed by the Division of Securities as churning. The Division of Securities claimed that Aziz also misrepresented the terms of the trades which Aziz effected in customer accounts.
The Notice also stated that Aziz misrepresented a customer’s investment portfolio, claiming that the customer’s accounts were worth $650,000.00 when the customer’s accounts had only been worth $245,000. Aziz allegedly misrepresented this information to induce securities sales. The Division of Securities claimed that Aziz’s conduct was violative of R.C. 1707.44(B)(4) and (5) in this respect.
Moreover, the Notice stated that Aziz committed securities fraud through excessively trading to accumulate commissions while omitting this information from clients; and through making misrepresentations about a customer’s investment portfolio. Aziz’s conduct was violative of R.C. 1707.44(g), according to the Division of Securities. Moreover, the Division alleged that Aziz’s conduct was violative of R.C. 1707.44(M)(1)(a), (b) and (c) through his deceptive and manipulative actions, evidenced by churning of the customer accounts.
FINRA Public Disclosure reveals that Aziz is the subject of a customer initiated investment related arbitration claim which was resolved for $210,000.00 in damages based upon accusations against Aziz of excessive, unsuitable and unauthorized trading in the customer’s account while Aziz was associated with Coastal Equities Inc. FINRA Arbitration No. 17-02287 (Aug. 30, 2018).
