Wells Fargo Broker Barred in Theft Investigation
Kamran Daryush Nougzust, a registered representative with Wells Fargo Advisors, was permanently bared from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after failing to provide information and documentation requested by FINRA in connection with an investigation into Nougzust’s alleged conversion of a bank’s trust funds. Letter of Acceptance, Waiver, and Consent No. 20140435530 (Mar. 5, 2015). Public disclosure records reveal that Wells Fargo Advisors, LLC, discharged Nougzust on October 29, 2014, after alleging that Nougzust accepted checks drawn on a bank customer’s trust account held at another financial institution, and deposited those checks into Nougzust’s personal banking account.
According to the AWC, on February 6, 2015, FINRA requested that Nougzust provide information and documentation, pursuant to Rule 8210, to assist FINRA in an investigation into allegations that Nougzust improperly obtained roughly $99,500 from a bank trust account.
The AWC indicated that Nougzust had communicated with FINRA on February 10, 2015, in an e-mail correspondence where Nougzust acknowledged that he received FINRA’s requests for information and documentation. Nougzust declined to assist FINRA, indicating that he would not provide the information and documentation at any point. FINRA found this conduct to be violative of FINRA Rules 8210 and 2010.
FINRA registered representatives like Nougzust who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.