INVESTORS: Former Network 1 Financial Securities broker David Khezri was barred by FINRA following allegations of recommending unsuitable investments.
David Khezri (CRD: 2736831) was registered as a broker with Network 1 Financial Securities from 2020 until 2021. Khezri was previously registered as a broker with Worden Capital Management from 2017 until 2020.
Khezri has seven disclosures on his BrokerCheck report. One customer dispute filed against Khezri was closed with no action taken.
December 2021 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Khezri consented to the sanction and to the entry of findings that he refused to provide documents and information that FINRA requested in connection with its investigation of whether Khezri made unsuitable securities recommendations in customer accounts.
Resolution: Acceptance, Waiver & Consent (AWC)
Bar: Bar (Permanent)
Registration Capacities Affected: All Capacities
Start Date: 12/23/2021
March 2021 Customer Dispute
Allegations: Unsuitable excessive trading and churning” FINRA Rule 2111, Federal and State Securities laws, Breach of Fiduciary Duties and Negligence, Breach of Contract, Common law fraud, Agency and Respondent Superior
Damage Amount Requested: $187,000.00
December 2020 Customer Dispute
Allegations: Between approximately January 2015 and July 2015 allegations specifically stated in relation to the firm were: aggressively trading the account without sufficient authorization resulting in excessive turnover that generated excessive fees; failure to supervise; and failure to amend the U5 to indicate Rep was terminated or under investigation when his association with the firm ended. At the end of the statement of claim, there is a list of allegations including both reasonable basis and quantitative unsuitability (FINRA 2111), breach of Federal and States Securities laws, Breach of Fiduciary Duty and Negligence, Breach of Contract, Common law fraud, and Agency and Respondeat Superior.
Damage Amount Requested: $72,000.00
Settlement Amount: $7,000.00
June 2017 Regulatory Judgment
Initiated By: Maryland Division of Securities
Allegations: Order to Show Cause due to disciplinary history disclosed on CRD.
Sanctions: Registration denied.
Broker Comment: Due to ongoing family health issues, RR neglected to respond in a timely fashion to the Division’s request for information. RR intends to reapply to the state, as they have instructed, and will provide answers to all questions asked by the Division.
September 2015 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the allegations, Khezri consented to the sanctions and to the entry of findings that he improperly exercised discretion by effecting approximately one-hundred trades for six customers without obtaining prior written authorization from the customers and without having the accounts accepted as discretionary by his member firm. Khezri exercised discretion by executing trades days after his customers provided him oral authority to do so. The findings stated that Khezri’s firm did not permit discretionary trading except for registered investment advisors trading in the accounts of their advisory clients and Khezri was not a registered investment advisor.
Resolution: Acceptance, Waiver & Consent(AWC)
Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
Registration Capacities Affected: Any Capacity
Duration: 30 business days
Start Date: 10/19/2015
End Date: 11/30/2015
The Sonn Law Group is currently investigating allegations surrounding David Khezri. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.