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Mazi Monshi: Investor Claims Losses of More than Half a Million Dollars

Jan 25, 2022 Investor Disputes

Mazi Monshi (CRD #:2629721), a broker registered with  IFP Securities, is involved in an investor dispute according to his BrokerCheck record, accessed on January 10, 2022. He is also a registered investment advisor with Independent Financial Partners.  

Investor Allegations 

On October 28, 2021, a dispute was filed against Mazi Monshi, alleging that he executed certain transactions in his client’s account that were either unsuitable or excessive. Mazi Monshi allegedly executed these transactions without prior authorization from the client. The client further alleged that Mazi Monshi asked her to sign blank forms and then either Monshi or his spouse misused or misappropriated funds in her account. The investor is seeking $600,000一the dispute is still pending. 

Which FINRA Rules did Mazi Monshi Allegedly Violate? 

1. FINRA Rule 2111 (Unsuitability Rule) 

Investments must suit an investor’s financial goals, risk tolerance, age, and investment horizon. Unsuitable trading includes excessive trading. Excessive trading occurs when brokers execute trades simply for the sake of generating commissions for themselves, without any financial benefit for their investors. 

2. FINRA Rule 3260(b) 

A broker must always have the customer's authorization before executing any transactions in their account. This is in accordance with FINRA Rule 3260(b), which states that a broker shall not exercise any discretionary power in a customer's account unless given prior written authorization. 

3. FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) 

Mazi Monshi’s unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Unsuitable Investment Recommendations 

On September 9 2020, an investor alleged that Mazi Monshi recommended unsuitable REITs and BCDs, as well as other high-commission illiquid investment recommendations. The investor is seeking $3,900,000the dispute is still pending. 

What are BDCs? 

FINRA defines a Business Development Company (BDC) as a domestic, closed-end investment company/ BDCs can be speculative investments that involve significant risks. As a result, BDC investments may not be suitable for all investors. 

What are REITS? 

A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. A REIT could contain anything from office buildings and other commercial units to apartment buildings or healthcare facilities.  

If you lost money in unsuitable REITs or BDCs, you might have a viable claim against your broker or broker-dealer, and you should not hesitate to contact the securities attorneys of Kurta Law.  

Background Information 

Mazi Monshi has passed the following exams: 

  • Series 65 - Uniform Investment Adviser Law Examination 
  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

Mazi Monsh Is a registered broker in 11 states. He is also a registered investment advisor in nine states. 

Mazi Monshi has also worked with the following firms: 

  • LPL Financial (CRD#:6413) 
  • Ameriprise Financial Services (CRD#:6363) 
  • Raymond James Financial Services (CRD#:6694) 
  • WM Financial Services (CRD#:599) 
  • Morgan Stanley DW (CRD#:7556) 
  • Prudential Securities Incorporated (CRD#:7471) 
  • JW Charles Securities (CRD#:33832) 
  • Gruntal & Co. Incorporated (CRD#:372) 

Kurta Law Can Help 

If you have worked with Mazi Monshi and have concerns about your investments, 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.