Kassaei Allegedly Sold $2.3 Million Worth of Securities Transactions
Investment adviser Tony Kassaei has been barred by FINRA for allegedly participating in undisclosed and unapproved private securities transactions involving 11 individuals who reportedly invested $2.6 million in real-estate businesses, a scheme perpetrated by Francisco P. Esparza. From approximately October 2009 to April 2014, Kassaei worked under Francisco Esparza, while associated with J.P. Turner, soliciting individuals to make investments with Esparza’s real-estate Ponzi scheme according to a FINRA Letter of Acceptance, Waiver and Consent (AWC) under review by attorney Alan Rosca.
Ponzi scheme attorney Alan Rosca, of the Rosca Scarlato LLC law firm is investigating activity related to Tony Kassaei’s alleged participation in Esparza’s scheme. Tony Kassaei customers who believe they lost their money as a result of Kassaei’s recommendations are encouraged to contact Alan Rosca with any useful information or for a free, no obligation discussion about their options. Call 888-998-0530, via email at arosca@rscounsel.law, or fill out the contact form on this page.
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Tony Kassaei Sanctioned by FINRA for Undisclosed and Unapproved Private Securities Transactions
Investment adviser Tony Kassaei reportedly participated in private securities transactions with Francisco Esparza from approximately October 2009 to April 2014, without providing prior written or oral notice to his employer, J.P. Turner according to the AWC.
Toni A. Kassaei allegedly facilitated at least 11 investors’ securities transactions in the form of promissory notes issued by entities under Esparza’s control, totaling at least $2.6 million. Nearly all 11 of these investors were J.P. Turner customers.
Kassaei allegedly contributed to the investments by soliciting and recommending individuals to make investments with Esparza, helping investors establish accounts at self-directed IRA firms to hold the investments, helping investors transfer funds, directing Esparza and his subordinate to prepare promissory notes, and obtaining investor’s signatures on documents related to the investments, according to his Brokercheck page.
Esparza reportedly compensated Kassaei for soliciting and facilitating these private securities.
FINRA staff opened an investigation in 2018 on Kassaei’s involvement in Esparza’s scheme and sent Kassaei multiple requests for documents and information. On August 13, 2020 Kassaei acknowledged that he received FINRA’s request and he will not provide the documents and information requested nor provide on-the-record testimony, according to his Brokercheck page.
On September 9, 2020, without admitting or denying the findings that he participated in undisclosed and unapproved transactions, Kassaei signed the Acceptance Waiver and Consent form issued by FINRA which barred him from association with any FINRA member in any capacity indefinitely.
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Tony Kassaei’s Alleged Participation in Francisco Esparza’s Ponzi Scheme
According to Francisco Esparza’s Brokercheck page, he started Esparza Real Estate, Inc. around 2009, soliciting investments for the acquisition of residential properties in Southern California, promising investors a fixed rate of return. As part of his scheme, Esparza allegedly used new investor funds to pay back prior investors whom he owed money to and he did not secure or acquire properties, as he promised.
Francisco Esparza reportedly misrepresented himself to investors, claiming he was a successful investor but failed to share that his prior business was in debt and that he would use their money to pay other investors and to pay for personal purposes. He allegedly misused investor funds to pay for a house, luxury vehicles, a $100,000 wedding, and vacations, according to his Brokercheck page.
On July 17, 2018, the United States District Court sentenced Esparza to 78 months in prison for defrauding 70 investors out of more than $12 million. United States District Judge David O. Carter ordered Esparza to pay $12.6 million in restitution according to an official press release.
Francisco Esparza was previously registered with J.P. Turner from September 2009 until January 2010. Investment adviser Tony Kassaei and Esparza reportedly worked together at J.P. Turner for about one year.
Tony Kassaei customers who lost their money in Esparza’s scheme should discuss their case with an experienced investor loss lawyer. Call 888-998-0530, send an email to arosca@rscounsel.law, or leave a message through the contact form on this page for a free case evaluation of potential recovery options.
Tony A. Kassaei Faced Allegations of Unsuitability in 2011
Ponzi scheme attorney Alan Rosca found as reported on Tony Kassaei’s FINRA Brokercheck page, that he was involved in a customer dispute initiated on the allegations of unsuitable recommendations and misrepresentation, among others. The dispute was reported as settled on May 31, 2011 with a settlement amount of $84,000.
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Kassaei Switched Seven Companies in 14 Years
Investment adviser Tony Kassaei entered the securities industry in 2001 as a General Securities Representative at Morgan Stanley DW Inc., from May 2001 to March 2003. He then moved to Citicorp Investment Services and stayed there from April 2003 until January 2004. From January 2004 until October 2005, Kassaei was registered with UBS Financial Services. Come September 2005 and until August 2009, Kassaei was registered with LPL Financial Corporation.
Starting August 2009 until October 2015, Kassaei was a registered broker with J.P. Turner. For a short period between August 2015 to October 2015, he was registered with Summit Brokerage Services, Inc. until he migrated to Centaurus Financial Inc., where he was a broker until March 2019 according to his Brokercheck page.
Despite being barred from association with any FINRA member in any capacity, Tony Kassaei is still an active investment adviser with Equity Advisors as of the date of this article, as reported on his IAPD Profile.
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.
Have You Suffered Losses As A Result of Tony Kassaei’s Investment Recommendations?
Investor loss attorneys at Rosca Scarlato LLC law firm have years of experience in defending investor loss cases. They often represent victims of Ponzi schemes or broker misconduct and are currently evaluating recovery options for investors who believe they suffered losses as a result of Tony Kassaei’s involvement in Francisco Esparza’s Ponzi scheme.
Typically, cases like these are taken on a contingency fee basis. There is no fee or costs if there is no recovery. The firm advances costs and investors are required to pay only if there’s a recovery.
Tony Kassaei customers who believe they lost money in connection with Esparza’s Ponzi scheme or alleged broker misconduct, 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 page.
