Zvi Ben-Zvi of New York New York a stockbroker formerly registered with Paulson Investment Company has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Ben-Zvi engaged in unapproved private securities transactions during the time he was associated with Paulson Investment Company. Letter of Acceptance Waiver and Consent No. 2018058932001 (June 27, 2019).
According to the AWC, in March of 2018, a securities transaction concerning Ben-Zvi’s own company, Company A, had been executed by Ben-Zvi away from the firm. In particular, a venture capital enterprise was solicited by Ben-Zvi to acquire a stake in Company A. In this regard, a note purchase agreement had been executed by the investor by which the investor was to receive membership units representing a fifteen percent stake of Company A in return for paying $150,000.00. The AWC stated that the venture capital enterprise had been solicited by Ben-Zvi again in May of 2018. This time, the investor made a $50,000.00 contribution in return for more of Company A’s membership interests.
FINRA revealed that Ben-Zvi was obligated under Paulson Investment Company’s procedures to apprise the firm about any securities transaction Ben-Zvi intended on engaging in prior to the stockbroker engaging in the transaction. Nonetheless, no notification had been provided to Paulson Investment Company by Ben-Zvi in regard to both of the securities transactions involving Company A. Therefore, FINRA found Ben-Zvi’s conduct violative of FINRA Rule 2010 and 3280.
FINRA Public Disclosure confirms that Ben-Zvi has been employed by at least two different securities broker dealers – John Thomas Financial and Merriman Capital Inc. – which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
Ben-Zvi was terminated from Paulson Investment Company on June 22, 2018, following an international investigation by the firm into Ben-Zvi’s activities which resulted in the firm finding that Ben-Zvi engaged in conduct violative of FINRA Rule 3280 as well as the firm’s procedures and policies.
