SM Imaze Hasnain, of Roseville, California, a stockbroker with State Farm VP Management Corp, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations of his misappropriation of customer funds and acceptance of unauthorized loans from customers.
Public disclosure records reveal that on November 23, 2015, State Farm discharged Hasnain amid allegations that the firm received a notification that a customer complained about loaning Hasnain funds which were supposed to have been repaid through Hasnain’s payment of the customer’s life insurance premiums.
Hasnain, according to State Farm’s allegations, failed to respond to the firm’s additional requests for information pursuant to the customer’s complaint prior to Hasnain’s termination. State Farm’s review apparently raised other concerns regarding Hasnain’s handling of premium payments and accounts.
According to the AWC, subsequent to State Farm’s termination, FINRA launched an investigation into whether Hasnain misappropriated client funds and accepted unauthorized loans from customers. The AWC stated that on March 31, 2016, FINRA’s personnel requested that Hasnain provide testimony, per Rule 8210, in connection with their investigation.
Hasnain reportedly responded to FINRA on April 1, 2016, where he acknowledged to FINRA personnel that he understood their request, but would not be cooperating by providing testimony at any point. FINRA found that Hasnain’s failure to cooperate in this regard was violative of FINRA Rule 2010 and 8210, leading to his permanent bar.
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