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Former Austin Texas UBS and Oppenheimer Stockbroker Fined and Suspended

Zahir Walji of Austin, Texas submitted an Acceptance, Waiver and Consent (AWC) in which he was assessed a fine by the Department of Enforcement for the Financial Regulatory Authority (FINRA) and suspended from association with any FINRA member for a period of three months for allegedly failing to provide proper written notice about his outside business activities and failing to disclose two outside business activities.

Walji has been associated with two FINRA member firms since entering the industry in 2006. From January 2006 through October 2012, Walji was associated with UBS Financial Services, Inc. (UBS). On October 12, 2012, UBS filed a Form U5 terminating Walji for “engaging in unapproved outside business activities and private securities transactions with firm clients”. Walji was a representative for Oppenheimer & Co. Inc. from October, 2012 until his termination in May, 2014.

Without admitting or denying the findings, Walji was found by FINRA to have allegedly participated in two outside business activities and participated in six private securities transactions without providing prior written notice of the outside business activities or private securities transactions to UBS. In addition, FINRA alleges that Walji did not comply with restrictions UBS placed on him after approving his outside business activities willfully violating FINRA Rule 2010 and 3270.

During his time at UBS, Walji was an officer at SCM, LLC (SCM). SCM ran an upscale grocery market that Walji allegedly had reasonable expectation to be compensated. Walji was also a partner in LOI, LP (LOI) which was a convenience store from which Walji also expected to receive compensation. FINRA found that Walji did not provide proper written notice to UBS in engaging in either of the outside business activities by leaving SCM and LOI out of a completed annual attestations form violating FINRA Rue 3270 and 2010.

FINRA additionally found that Walji allegedly engaged in six private securities transactions by selling limited partnerships in HCI, LP (HCI) to six firm customers for $90,000. Walji allegedly did not provide proper written notice to UBS of the securities transactions or receive approval from the firm therefore violating FINRA Rule 2010. Walji also allegedly participated in a private real estate transaction for which he received a finder’s fee of $84,600. This alleged outside business activity was not approved by UBS. For the reasons above, FINRA suspended Zahir Walji from association with any FINRA member in any capacity for a period of three months and ordered him to pay a fine of $7,500.

Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers like Oppenheimer & Co. Inc. to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as Oppenheimer & Co. Inc. own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Oppenheimer & Co. Inc., which should consistently oversee its employees in order to prevent stockbroker misconduct.

Have you suffered losses in your Oppenheimer & Co. Inc. investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.