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David Khezri Barred After Allegedly Failing to Cooperate with FINRA Investigation

Feb 22, 2022 Barred Broker

David Khezri (CRD #: 2736831), a broker formerly registered with Network 1 Financial Securities, has been barred by FINRA, according to his BrokerCheck record, accessed on February 10, 2022. 

This bar stems from allegations that David Khezri refused to provide documents and information requested by FINRA in connection with its investigation of whether he allegedly made unsuitable securities recommendations.

By refusing to produce the documents and information requested pursuant to FINRA Rule 8210, David Khezri violated FINRA Rules 8210 and 2010.

FINRA Rule 8210 requires that registered brokers supply FINRA staff with all information and documents requested in the course of an investigation. A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to "observe high standards of commercial honor and just and equitable principles of trade."

You can read a copy of the bar Acceptance, Waiver, and Consent agreement here

Other Disclosures

Pending Disputes

  1. On March 15, 2021, David Khezri was named in an investor dispute alleging unsuitable excessive trading and churning, violation of federal and state securities laws, breach of fiduciary duties and negligence, breach of contract, and common law fraud. The damage amount requested is $187,000; the dispute is pending. 
  2. On March 6, 2020, David Khezri was named in another investor dispute alleging breach of fiduciary duty and negligence. The damage amount requested is $235,635; the dispute is pending. 

Maryland Division of Securities 

On June 27, 2017, the Maryland Division of Securities denied David Khezri's registration after he allegedly neglected to respond in a timely fashion to the Division's request for information regarding his disciplinary history. 

FINRA Suspension and Fine

On September 24, 2015, David Khezri consented to a 30-day suspension and $5,000 fine. The FINRA suspension and fine stemmed from allegations that he executed 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.

A broker must always have the customer's written permission before exercising discretion. This is in accordance with FINRA Rule 3260(b). A broker executing unauthorized trades in a customer's account also violates FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.

You can read the full copy of the AWC here.

Background Information

David Khezri has passed the following exams: 

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

David Khezri has also worked with the following firms:

  • Worden Capital Management (CRD#:148366)
  • Joseph Stone Capital (CRD#:159744)
  • Cape Securities (CRD#:7072)
  • EKN Financial Services (CRD#:113525)
  • Com Corp (CRD#:18281)
  • Liberty Partners Financial Services (CRD#:130390)
  • Milestone Financial Services (CRD#:43295)
  • Gilford Securities Incorporated (CRD#:8076)
  • Seaboard Securities (CRD#:755)
  • J. Meyers & Co.(CRD#:15609)
  • Investors Associates (CRD#:958)

Kurta Law Can Help

If you have been victimized after working with David Khezri, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.