Former LPL Financial LLC Broker, Maziar Monshi, Has Had Three Customer Complaint Disclosures Alleging Sales Practice Misconduct
Maziar Monshi (CRD # 2629721) is a Financial Advisor at IFP Securities, LLC in Boca Raton, FL. Maziar Monshi has been in the securities industry since 1996 and previously worked at LPL Financial LLC, Ameriprise Financial Services, Inc., Raymond James Financial Services, Inc., WM Financial Services, Inc., and Morgan Stanley.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Maziar Monshi has been the subject of three (3) customer complaints, alleging sales practice misconduct:
• September 2020—”Claimants allege that Maziar Monshi, while associated with LPL from 2006 through 2015 and with AFS from 2015 through 2016 recommended unsuitable investments in a number of REITs and BDCs, as well as other high-commission illiquid investment recommendations.” Alleged damages are $3,900,000,00 and the matter remains pending.
• February 2008—”CLIENTS CLAIMED THAT A TRADE ERROR HAD OCCURRED IN THEIR ACCOUNT. IN DECEMBER 2005 THE CLIENTS REQUESTED THE PURCHASE OF $300,000.00 IN INSURED MUNICIPAL BONDS. A TRADE WAS EXECUTED BY MAZIAR MONSHI ON 12/28/05 FOR 300 PHOENIX AZ INDIVIDUAL DEVELOPMENT AUTHORITY MULTIFAMILY REVENUE BONDS VALUED AT $299,965.00. THE BONDS WERE NOT INSURED.” The matter settled for $39,151.00.
• July 2003—”CLIENT ALLEGES THAT THE INTEREST RATE PAYABLE ON HER FIXED ANNUITY, PURCHASED ON 10/31/01 WAS MISREPRESENTED WITH REGARD TO THE INTEREST RATE ASSOCIATED WITH HER INVESTMENT.” The matter settled for $5,796.76.
For a copy of Maziar Monshi’s CRD, click here
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. In addition, brokerage firms have a duty to conduct due diligence into the Non-Traded REIT and BDC issuers prior to recommending the investments.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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