Farrukh Shazad Kazmi of Moorestown New Jersey a stockbroker currently registered with Berthel Fisher Company Financial Services Inc. has been fined $20,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to an Order Accepting Offer of Settlement containing findings that (1) Kazmi made unauthorized trades in customer accounts (2) Kazmi falsified his statements to the firm and to FINRA personnel in the course of their inquiries into Kazmi’s activities and (3) Kazmi effected the sale of equities to an unauthorized person.

According to the Decision, while Kazmi was employed by Berthel Fisher, the firm’s written supervisory procedures disallowed brokers from engaging in discretionary trading absent authorization from both the firm and the customer in writing. Apparently, Kazmi exercised discretion in the accounts of customers ZR, NT, PD, MK, SF and KP despite never having procured the customers’ written authorization. The Decision stated that the firm also never approved of the customers’ accounts for purposes of Kazmi’s discretionary trading.

The Decision further revealed that compliance questionnaires had been submitted by Kazmi on three different occasions in which he represented that he did not communicate with customers utilizing unauthorized channels. Apparently; however, Kazmi corresponded with eleven customers outside the firm’s auspices. Additionally, Kazmi reportedly represented to the firm’s Chief Compliance Officer that he never made discretionary trades in customer accounts besides those uncovered in a letter from the Chief Compliance Officer.

Moreover, the Decision stated that Kazmi executed thirty-six initial public offerings transactions for a customer, IBM who was affiliated with another brokerage firm. Apparently, Kazmi obtained more than $10,000.00 in compensation for effecting the unauthorized purchases and sales for IMB.

FINRA found Kazmi’s conduct violative of FINRA Rules 2010, 5130(a)(1), 4511, 3110 and NASD Conduct Rules 2510(b).

FINRA Public Disclosure also confirms that Kazmi has been terminated from at least two prior brokerage firm employers supported by accusations of his wrongdoing on the job. In particular, Kazmi was previously employed with Morgan Stanley Dean Witter, who discharged Kazmi based upon allegations of his mishandling of customer orders. Then, Kazmi was associated with Sterne Agee Financial Services Inc., but discharged based on Sterne Agee’s accusations that without the firm’s approval, Kazmi raised capital for an outside company.

Kazmi has been registered with Berthel Fisher Company Financial Services Inc. since January 5, 2010.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

Questions or comments regarding the source or accuracy of any information, including any subsequent developments, should be directed to:  [email protected]

This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer.

Guiliano Law Group, P.C.

Our practice is limited to the representation of investors. Over the last three decades, we have recovered more than a hundred million dollars for more than 1,000 injured investors from all over the United States and several foreign countries. We accept representation purely on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a confidential consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at stockbrokerfraud.com

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com

Stockbroker Fraud. Securities Arbitration and Investment Fraud Lawyers.  
National Practice. Contingent Fee. Confidential Free Consultation.

 (877) SEC-ATTY

Tags: ,

No comments yet.

Leave a Reply

Name (required)

Email (will not be published) (required)


%d bloggers like this: