Farrukh Shazad Kazmi, a New Jersey based broker is the subject of two customer dispute disclosures initiated on the allegations of unsuitable investment recommendation and misrepresentation among others.
Investor lawyer Alan Rosca, of Rosca Scarlato LLC law firm is investigating conduct related to the two customer dispute disclosures involving broker Farrukh Kazmi on the allegations of unsuitable investment recommendation and misrepresentation among others.
Kazmi is currently registered as a broker with Berthel, Fisher & Company Financial Services, Inc. The firm is a member firm of the Financial Industry Regulatory Authority (FINRA) and Kazmi has been registered with the firm since January 5, 2010. He was in the employment of the firm when he carried out the alleged acts leading to the pending customer disputes.
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Farrukh Kazmi Is the Subject of Two Customer Dispute Disclosures
Publicly available information reviewed by investor loss recovery lawyer, Alan Rosca, revealed that two customer disputes initiated on similar allegations are currently disclosed on the FINRA brokercheck page for the Berthel Fisher broker Farrukh Kazmi.
In a dispute initiated on July 24, 2020, the client is requesting $350,000 in damages. The client is alleging that the investments they purchased between the period of 2013 and 2014 were unsuitable to them. The client also alleged that the investments were misrepresented and that the firm failed to supervise the actions of the broker. The client further alleged that the firm also failed to carry out an adequate due diligence on the investments.
A similar dispute was instituted on July 16, 2020. The client also makes allegations of unsuitable investment recommendations made between 2013 and 2014 as well as the misrepresentation of the investments to them. The client further alleged that the firm failed to conduct adequate diligence and failed in its duty to supervise the actions of the broker. As a result of this, the client is seeking to recover $165,000 in damages from the broker.
Farrukh Kazmi Has Been the Subject of a FINRA Regulatory Action
According to the reports on his FINRA brokercheck page, Berthel Fisher broker Farrukh Kazmi was the subject of a regulatory action initiated by FINRA on August 1, 2018.
According to the Complaint filed by FINRA, Farrukh Shazad Kazmi was alleged to have regularly used instant messaging and text messaging to communicate with about 14 customers of his firm to carry out securities transactions. This act was allegedly a violation of his firm’s procedures. This act was alleged to have been done between October 2010 and October 2014.
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It was further alleged that Kazmi violated FINRA regulations and his firm’s rules by allegedly exercising discretion on multiple times when placing trades in the accounts of at least six customers of the firm. This discretion which was alleged to have been exercised between May 2013 and July 2014 was done with the prior written authorization of the customers or the firm.
As reported in the complaints, it was further alleged that broker Farrukh Kazmi made false statements to his firm, Berthel Fisher as well as FINRA, denying his use of instant messaging and text messages to conduct securities business. He was also alleged to have denied exercising discretion in customer accounts in statements he made to both FINRA and his firm.
Farrukh Shazad Kazmi was also alleged to have placed 37 purchase orders for shares in initial public offerings on behalf of customers which are registered with another broker-dealer. Kazmi allegedly placed this trade with the knowledge of this information.
According to the Order Accepting Offer of Settlement, broker Farrukh Kazmi was ordered to pay $20,000 in civil penalties as well as $10,350.71 in disgorgements. He was also suspended in all capacities for five months. The suspension commenced on April 15, 2019 and ended September 14, 2019.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Investment Loss Recovery Lawyers Investigating
The investor loss recovery lawyers of the Rosca Scarlato LLC law firm expertly advises and represents investors who are victims of broker or investment-related fraud and other misconducts and is currently investigating conduct related Farrukh Shazad Kazmi’s customer dispute disclosures on the allegations of unsuitable investments and misrepresentation.
It is important to note that the firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to allegations of unsuitable investments and misrepresentation, may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.