The Financial Industry Regulatory Authority (“FINRA”) reports troubling allegations of misconduct against securities broker David Khezri (CRD#: 2736831, Hauppauge, New York). Namely, the securities broker, who currently works in Network 1 Financial Securities’ Hauppauge offices (2010 – present) and who also worked for Worden Capital Management (2017 – 2020) and Joseph Stone Capital (2015 to 2017), discloses four serious issues on BrokerCheck: two client disputes and two regulatory actions. Let’s take a quick look at these disclosures.
Notably, a client of Joseph Stone Capital took aim at Khezri through a 2020 lawsuit. First of all, the client indicated that Khezri breached a fiduciary duty to the client. Secondly, the client indicated that Khezri’s negligence was a factor in causing the client’s losses. Thirdly, Joseph Stone Capital purportedly failed to supervise. Evidently, for losses sustained on OTC equities, the client demands $235,635 in damages in this ongoing matter.
Apparently, in June of 2017, Maryland Division of Securities denied Khezri’s registration. This means that Khezri was disallowed from being a securities broker in the state. Allegedly, Maryland issued an Order to Show Cause relating to Khezri’s disciplinary history. It seems that Khezri failed to respond to Maryland’s request of information.
In addition, FINRA issued Khezri a 30-day suspension and a $5,000 fine for making improper or unauthorized trades at Cape Securities. Apparently, Khezri did not have written permission from clients whose accounts he traded in. Not only that, but Cape Securities did not accept those accounts as discretionary. Because of this, Khezri violated FINRA rules and NASD rules.
Evidently, in a prior client dispute from 2005, a client took action against Khezri for allegedly making excessive trades. Apparently, Khezri caused a Milestone Financial Securities client to experience losses. However, this matter closed without resolution.
BrokerCheck indicates that David Khezri denies all allegations of sales practice violations. Have you experienced losses by investing with this securities broker? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities brokers and financial advisors.
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