Faraj Elmagbari (CRD #4699807) Has an Employment Separation Disclosure on FINRA BrokerCheck

Faraj Elmagbari (CRD #4699807) was previously registered as a broker and has an employment separation disclosure on FINRA BrokerCheck. We reviewed his BrokerCheck report on January 27, 2026. It reflects one termination disclosure. If you invested with Faraj Elmagbari and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Employment Separation After Allegations

Faraj Elmagbari’s FINRA BrokerCheck report reflects one termination disclosure. A summary of the disclosure is below:

Wells Fargo Securities, LLC reported that it discharged Faraj Elmagbari on November 6, 2025. Faraj Elmagbari’s FINRA BrokerCheck report states the firm discharged him for sending unencrypted, confidential client information to an email address outside of the firm.

Rule Summary #1: FINRA Rule 3110 (Supervision)

FINRA Rule 3110 requires firms to supervise associated persons. Firms often use supervision to set and enforce controls for communications and client data.

Rule Summary #2: FINRA Rule 4511 (General Requirements)

FINRA Rule 4511 requires firms to make and preserve required books and records. Off-channel or unapproved communications can create recordkeeping problems.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation designed to strengthen the standard of conduct that broker-dealers owe to retail investors when making recommendations about securities transactions or investment strategies. Adopted by the U.S. Securities and Exchange Commission and effective as of June 30, 2020, Reg BI aims to enhance investor protection while preserving investor access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in the best interest of the retail customer at the time a recommendation is made, and not to place their own financial or other interests ahead of the customer’s. This represents a higher standard than the historical “suitability” requirement, which only required that recommendations be suitable, not necessarily optimal or conflict-free.

Reg BI is built around four key obligations:

1. Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and recommendations, including fees, scope of services, and conflicts of interest.
2. Care Obligation – Recommendations must be made with reasonable diligence, care, and skill, considering costs, risks, and alternatives.
3. Conflict of Interest Obligation – Firms must identify, disclose, and mitigate or eliminate conflicts, particularly those that create incentives to favor one product over another.
4. Compliance Obligation – Firms must establish policies and procedures designed to ensure compliance with Reg BI as a whole.

Importantly, Reg BI applies at the recommendation level, not as a continuous duty like the fiduciary standard applicable to registered investment advisers. Still, it significantly narrows the gap by emphasizing cost considerations, conflict management, and investor-focused decision-making.

Overall, Regulation Best Interest seeks to promote transparency, improve the quality of investment recommendations, and reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on His FINRA BrokerCheck report, Faraj Elmagbari:

Is not currently registered.

Has passed the Securities Industry Essentials (SIE) exam. Faraj Elmagbari has passed Series 79TO. He has also passed Series 63.

Was previously registered with Wells Fargo Securities, LLC.

Kurta Law Can Help

If you have worked with Faraj Elmagbari and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Failure to Supervise | What is Securities Fraud?

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.