Sara Yasmin Qazi of Beverly Hills, California, a stockbroker registered with Raymond James Associates Inc., has been fined $15,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Qazi engaged in private securities transactions or “selling away” and violated communication standards with the public. Letter of Acceptance, Waiver, and Consent No. 2021070719701 (November 20, 2023).
Qazi faced regulatory action initiated by FINRA because of a Form U5 dated March 15, 2021, filed by Morgan Stanley. The regulator learned that Morgan Stanley terminated Qazi’s association following concerns about her participation in unapproved outside activities.
According to the AWC, in 2020, Qazi was involved in a customer’s investment of $250,000.00 in preferred stock of Company A. She conducted due diligence on Company A. She also facilitated the investment, which included a wire transfer of funds. However, Qazi failed to provide written notice to Morgan Stanley about her involvement in this transaction, which was not approved by the securities broker dealer. FINRA found that Qazi violated FINRA Rules 2010 and 3280.
Additionally, Qazi violated FINRA’s standards for communications with the public in June 2020, when she emailed a financial model prepared by Company A to a firm customer. That model included revenue forecasts but omitted any conditions, limitations, or risks. Also, the model contained a projected internal rate of return for an investment in Company A. FINRA prohibited that type of projection from being provided to prospects. Also, in June and July 2020, Qazi sent a presentation about a private offering by Company A to a customer and four other individuals, without discussing the risks associated with the investment. Therefore, she violated FINRA Rules 2010 and 2210.
FINRA Public Disclosure shows that on December 23, 2008, a customer initiated an investment related complaint involving Qazi’s conduct, which was settled for $175,000.00 in damages. The complaint, which arose while Qazi was associated with UBS Financial Services Inc., alleged that Qazi did not fully disclose the risks involved in purchasing auction rate securities. The customer believed that these securities were fully liquid and free from mortgage exposure.
Qazi has been associated with Raymond James Associates Inc. in Beverly Hills, California, since March 12, 2021. Prior to this, she was associated with Morgan Stanley in Beverly Hills, California, from September 17, 2009, to March 15, 2021.