Halil Kozi, Formerly of Windsor Street Capital, Suspended by FINRA Following Allegations of Excessive Trading

Kozi, who had worked at 18 firms since 1987, has been suspended for two years.

The Sonn Law Group is investigating allegations that  Halil Kozi was excessively trading. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Halil Kozi (CRD#: 1121714) was most recently employed by Windsor Street Capital, who has since been expelled by FINRA. Prior to that, he was employed with Buckman, Buckman & Reid from 2016 until 2017 and with PHX Financial from 2013 until 2016.

In September 2019, Kozi was named in a FINRA complaint alleging that he had violated financial rules by churning in a customer’s account. According to a FINRA Office of Hearing Officers Complaint, from June 2013 through February 2015, Halil Kozi churned and excessively traded a PHX Financial Inc.’s customer’s account. The customer deposited a little over $200,000 in his account at PHX. Within the span of about a year and a half, Kozi allegedly recommended approximately 208 equity and options transactions, with a principal value of over $3 million.

The resulting annualized cost-to-equity ratio, the amount the account had to appreciate to break even, was 53%. According to FINRA, Kozi’s recommended transactions generated gross commissions totaling over $135,000, of which Kozi received over $87,000 while the customer’s account lost $72,000. Kozi’s commissions accounted for 95% of the total commissions he made over that same time period.

FINRA alleged that Kozi’s churning violated FINRA and SEC rules. According to the complaint, 103 of Kozi’s transactions were unsuitable, speculative options transactions that were inconsistent with the customer’s lack of options experience, his balanced growth investment objective, his moderate risk profile, or his financial situation and needs. According to FINRA, Kozi also over-concentrated the customer’s account in a single speculative security, a development-stage pharmaceutical company with virtually no revenue.

At one point, the pharmaceutical company’s stock constituted 85% of the customer’s account value, and it constituted more than 30% of the customer’s account value for 11 consecutive months during 18 total months the customer held that security. FINRA alleged that these transactions were unsuitable as they were not consistent with the customer’s balanced growth objective, moderate risk profile, or his financial situation and needs.

In March 2020, Kozi accepted sanctions by FINRA in the form of a two-year suspension. 

Contact Us Today

The Sonn Law Group is currently investigating allegations that Halil Kozi was excessively trading. 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.