The clients allege the investments they purchased between 2013-2014 were unsuitable and misrepresented to them by the representative. The clients also allege the firm failed to supervise the actions of the representative and failed to conduct adequate due diligence.

$350,000.00

$130,000.00

The representative believes the claim to be without merit and vigorously denies the allegations in the statement of claim. The representative believes the clients are sophisticated and educated professionals who have had extensive investment experience. The representative states that he had frequent and in-depth investment communication with the claimants to include joint discussions. The Firm, solely to compromise and settle disputed claims, agreed to settle an arbitration with the Claimants.

The client alleges the investments he purchased between 2013-2014 were unsuitable and misrepresented by the representative. The client also alleges the firm failed to supervise the actions of the representative and failed to conduct adequate due diligence.

$165,000.00

$35,000.00

The representative believes the claim to be without merit and vigorously denies the allegations in the statement of claim. The representative believes the client is a sophisticated and educated professional who has had extensive investment experience. The representative states that he had frequent and in-depth investment communication with the claimant to include joint discussions, and that the claimant's portfolios have performed well and met the clients needs. The Firm, solely to compromise and settle disputed claims, agreed to settle an arbitration with the Claimant.

FINRA

Kazmi was named a respondent in a FINRA complaint alleging that he regularly used instant messaging and text messaging to communicate with his member firm's customers to conduct securities business and by doing so, he violated the firm's written procedures and ignored its explicit instruction that he discontinue using instant messaging to communicate with his customers. The complaint alleges that Kazmi did not inform his firm that he used text messaging or instant messaging to conduct securities business, nor did he provide copies of these communications to the firm. In doing so, Kazmi prevented the firm from reviewing and retaining correspondence with the public, and making and preserving books and records. The complaint also alleges that Kazmi exercised discretion on hundreds of occasions when placing trades in the accounts of customers, without prior written authorization from the customers or written approval from his firm. The complaint further alleges that Kazmi repeatedly made false statements to the firm and to FINRA about using instant messaging to conduct securities business. Kazmi denied using instant messaging to communicate with customers in compliance questionnaires that he signed and submitted to the firm, and he falsely stated to FINRA and to the firm that his use of instant messaging was limited to a single client. Kazmi also falsely denied exercising discretion in customer accounts in statements to both the firm and FINRA. In addition, the complaint alleges that Kazmi also placed purchase orders for shares in initial public offerings on behalf of a customer whom Kazmi knew to be a registered representative of another broker-dealer. Kazmi received a total of $10,350.71 in commissions on these purchases and the subsequent sale transactions by this representative who was also his firm's customer.

Decision & Order of Offer of Settlement

Civil and Administrative Penalty(ies)/Fine(s)

$20,000.00

Disgorgement

$10,350.71

Suspension

All Capacities

Five months

4/15/2019

9/14/2019

Without admitting or denying the allegations, Kazmi consented to the sanctions and to the entry of findings that he used unapproved communications methods to conduct securities business. The findings stated that after learning that Kazmi had been using instant messaging to communicate with a customer, Kazmi's supervisor verbally informed him that his member firm's procedures strictly prohibited its registered representatives from using instant messaging to conduct securities business. That same day Kazmi confirmed in writing to his supervisor that he would no longer use instant messaging. Despite the firm's admonition and his own explicit agreement to cease using instant messaging to communicate with customers, Kazmi continued to use instant messaging in conducting securities business. In addition, Kazmi regularly corresponded with firm customers via text messaging regarding securities activity in their accounts. Kazmi did not inform the firm that he used text messaging or instant messaging to conduct securities business, nor did he provide copies of these communications to the firm. In doing so, Kazmi prevented the firm from reviewing and retaining correspondence with the public and making and preserving books and records. The findings also stated that Kazmi exercised discretion over customer accounts without written authorization. Although Kazmi received the customers' verbal authorization, he never sought or obtained written authorization from them to exercise discretion in any of their accounts at the firm and the firm never approved any of these customer accounts as discretionary accounts. The findings also included that Kazmi made false statements to the firm regarding his use of instant messaging, and provided false answers to FINRA regarding his use of instant messaging, use of text messaging, and use of discretion. FINRA found that Kazmi sold initial equity public offerings to a restricted person. Kazmi received a total of $10,350.71 in commissions on the purchases and the subsequent sale transactions by the restricted person.

Without admitting or denying the allegations, Kazmi consented to the sanctions and to the entry of findings that he used unapproved communications methods to conduct securities business. The findings stated that after learning that Kazmi had been using instant messaging to communicate with a customer, Kazmi's supervisor verbally informed him that his member firm's procedures strictly prohibited its registered representatives from using instant messaging to conduct securities business. That same day Kazmi confirmed in writing to his supervisor that he would no longer use instant messaging. Despite the firm's admonition and his own explicit agreement to cease using instant messaging to communicate with customers, Kazmi continued to use instant messaging in conducting securities business. In addition, Kazmi regularly corresponded with firm customers via text messaging regarding securities activity in their accounts. Kazmi did not inform the firm that he used text messaging or instant messaging to conduct securities business, nor did he provide copies of these communications to the firm. In doing so, Kazmi prevented the firm from reviewing and retaining correspondence with the public and making and preserving books and records. The findings also stated that Kazmi exercised discretion over customer accounts without written authorization. Although Kazmi received the customers' verbal authorization, he never sought or obtained written authorization from them to exercise discretion in any of their accounts at the firm and the firm never approved any of these customer accounts as discretionary accounts. The findings also included that Kazmi made false statements to the firm regarding his use of instant messaging, and provided false answers to FINRA regarding his use of instant messaging, use of text messaging, and use of discretion. FINRA found that Kazmi sold initial equity public offerings to a restricted person. Kazmi received a total of $10,350.71 in commissions on the purchases and the subsequent sale transactions by the restricted person. The representative entered into the settlement with FINRA, without admitting or denying the allegations in order to resolve this matter as efficiently as possible.

STERNE AGEE FINANCIAL SERVICES, INC.

Discharged

RAISING CAPITAL FOR UNIVERSITY IMAGING CENTERS OF AMERICA WITHOUT FIRM APPROVAL.

CUSTOMER ALLEGES THAT IN OR ABOUT MAY 1998, MR. KAZMI FAILED TO EXECUTE AN ORDER.

$3,039.00

$3,000.00

MORGAN STANLEY DEAN WITTER

Discharged

N/A

INTERNAL REVIEW N/A THE FIRM REVIEWED MR. KAZMI'S HANDLING OF CERTAIN ORDERS - THE FIRM TERMINATED MR. KAZMI'S EXMPLOYMENT ON OR ABOUT 10/30/1998.