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Former LPL Financial Broker Joshua Allen Farahi for Unauthorized Outside Business Activity

FINRA suspended former LPL Financial, Inc. broker Joshua Allen Farahi and fined him $25,000 for engaging in a prohibited outside business activity and making misstatements to his employing firm regarding this activity.

FINRA Case #2012032484601

According to the investigation, Farahi participated in and received compensation from undisclosed outside business activities outside of his responsibilities with LPL, maintaining a brokerage account in connection with these prohibited activities without updating the account's employment information to indicate his association with LPL Financial.

Farahi's first outside business activity was the continued operation of MJF Capital Management, LLC, a Commodity Pool Operator (CPO) that traded commodities and futures in customer accounts during and after Farahi became employed by LPL Financial.

FINRA found that Farahi also formed Opes Capital Group LLC and continued operating the outside entity after becoming associated with LPL, earning compensation of $52,173.28.

Further investigation revealed that Farahi engaged in these activities including commodities trading and futures contracts,even after LPL Financial explicitly denied Farahi's request to engage in such activities.

Farahi also allegedly made misstatements to LPL Financial regarding the two business' operations, which, combined with Farahi's inappropriate engagement in the outside business activities, led to LPL's termination of Farahi's employment.

FINRA also discovered that Farahi inaccurately responded to a Form U4 question by failing to declare a compromise with a creditor in which Farahi purportedly reached an agreement to pay $1,500 to satisfy a debt of $5,000. The findings state that an LPL periodic review of Farahi's credit uncovered this and similar violations.

If you have invested with a broker or financial adviser whose false or misleading statements or failure to declare outside business activities, including those which may pose a conflict of interest has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.