Imran Nazir Razvi of Frederick Maryland submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private securities transactions, a type of stockbroker misconduct known as selling away.
Between April 2017 and December 2017, while employed by Lincoln Financial Securities Corporation, Imran Razvi was denied approval to use a company he formed to refer investors to a supposed real-estate investment fund called Woodbridge Group of Companies LLC (Woodbridge). Despite being denied by his member firm, Imran Razvi, through his ownership of the company, received portions of commissions received by agents under his supervision. Subsequently, Woodbridge filed for bankruptcy and the U.S. District Court for the Southern District of Florida issued judgments against Woodbridge and its former owner, Robert Shapiro, who were required to disgorge the ill-gotten gains and pay a civil penalty.
FINRA Rule 3270 states, in pertinent part, that “[n]o registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.” FINRA Rule 2010 requires that members and associated persons observe high standards of commercial honor and just and equitable principles of trade. Conduct that violates FINRA Rule 3270 also violates FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Imran Razvi was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for violating FINRA Rule 3270 and Rule 2010. The suspension is in effect from March 16, 2020 through September 15, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private securities transactions (selling away), and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Lincoln Financial, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Lincoln Financial account due to private securities transactions by your broker? Was Imran Nazir Razvi your stockbroker? 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 Lincoln Financial stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
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 40 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.