INVESTOR UPDATE: Coastal Equities Financial Advisor, Sam Aziz, Under FINRA Investigation For, Among Other Things, Alleged Suitability Violations And Excessive Trading
In February 2019, The Wolper Law Firm previously reported that Coastal Equities Financial Advisor, Sam Aziz, was under investigation by the Financial Industry Regulatory Authority (FINRA). In March 2019, FINRA completed its investigation, barring Sam Aziz from the securities industry after he refused to participate and appear in an investigation into his sales practices. Among the findings were “The findings stated that FINRA was investigating allegations of excessive trading and unsuitable recommendations involving the use of margin, whether Aziz attempted to settle a customer’s complaint away from his firm, and whether he used an undisclosed personal email account and text messages to conduct securities business, among other allegations.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017052325701%20Sam%20Aziz%20CRD%201721932%20AWC%20jm.pdf
Sam Aziz has been in the securities industry since 1987 and previously worked at Wells Fargo and Stifel Nicolaus. He was terminated by David A Noyes & Co. as a result of the FINRA investigation.
In addition to the regulatory and employment disclsosures, Sam Aziz has been the subject of three customer complaints during his career, including the following:
- August 2017—”Claimant alleges that from December 2012 and September 2015 the F.A., without prior authorization, purchased unsuitable securities and churned his account(s).” The dispute was settled for $210,000.
- April 1997—”COMPLAINANT ALLEGES THAT AZIZ WAS NOT SERIES 3 REGISTERED YET HE HANDLED THE ACCOUNT, THAT HE BREACHED HIS FIDUCIARY DUTY TO COMPLAINANT AND THAT HE INDUCED HER TO BORROW MONEY TO CONTINUE TRADING. DAMAGES SOUGHT WERE AMENDED TO $76,000.00.” The dispute was settled for $39,000.
- April 1997—“CUSTOMERS ALLEGED UNSUITABILITY AND UNAUTHORIAZED TRADING IN REGARD TO THEIR ACCOUNT. DAMAGES ALLEGED: $240,000 CAPITAL LOSSES ($140,000 NET LOSSES).” The dispute was settled for $75,000.
For a copy of the Sam Aziz’s CRD, click https://brokercheck.finra.org/individual/summary/1721932#disclosuresSection
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.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at email@example.com.