Sharif Azmi Sharif of Elmhurst, Illinois, a stockbroker previously registered with LPL Financial LLC, has been fined $5,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Sharif failed to adequately disclose his involvement with an outside company and participated in customers’ private investment in that company without LPL Financial’s approval. Letter of Acceptance, Waiver, and Consent No. 2022076175701 (January 19, 2023).
According to the AWC, Sharif was one of the founding investors in a crypto asset mining company. On February 27, 2022, he and his business partner talked with four LPL customers about the company. Sharif answered questions from the customers, described the company’s business model, the amount of money they wanted to raise, and possible returns on investment.
FINRA stated that in April 2022, these four customers, along with four of their family members, collectively invested $900,000.00 in securities known as Simple Agreements for Future Equity (SAFEs). These SAFEs were aimed at purchasing crypto asset mining equipment, among other things. However, Sharif did not tell LPL about these transactions, violating company policy.
Before the crypto company could meet its fundraising goals, it changed its business model, leading to complaints from the customers to the securities broker dealer. FINRA found that Sharif violated Rules 2010 and 3280.
Sharif was associated with LPL Financial LLC in Elmhurst, Illinois from July 19, 2018, to January 19, 2023. On January 19, 2023, LPL Financial LLC filed a Form U5 reporting that Sharif was terminated due to inadequate disclosures regarding his outside activities. This included participating in customers’ private investments and using a trust for personal investment.
