FINRA fined and suspended former Morgan Stanley and current Raymond James & Associates broker Sara Yasmin Qazi of Southern California for participating in a $250,000 private securities transaction related to preferred stock in a healthcare company without providing notice or receiving approval from Morgan Stanley.
Additionally, Morgan Stanley filed an "employment separation after allegations" disclosure confirming that Qazi's participation in unapproved outside activities ultimately led to her termination, which the brokerage firm described as "a mutual agreement to separate." Qazi joined Raymond James in Beverly Hills, CA just three days before officially leaving Morgan Stanley.
Quazi is presently listed as a Senior Vice President of Investments at the GSE Impact Group of Raymond James, having served as a Sports and Entertainment Director in the Morgan Stanley Global Sports & Entertainment Division.
According to the findings, Sara Qazi (CRD #4118177) distributed a written presentation prepared by the healthcare company to a Morgan Stanley customer including information regarding a private offering by that company.
The presentation notably did not disclose "any of the risks" of investing in the outside offering, according to investigators, and at this time, Qazi's Morgan Stanley client purchased $250,000 of preferred stock in the outside healthcare company, which were sold without approval from Morgan Stanley.
In addition to admonishing Qazi for the unapproved outside business activities, FINRA found that Qazi violated industry rules for communications with the public—namely that the presentation/communications failed to meet the "fair and balanced" standard by its failure to disclose any risks, limitations, or other conditions that could have resulted in harm to investors.
Both selling away activity and failing to disclose facts and risks constitute regulatory violations that may see a broker and their associated firm liable for losses suffered by inadequately informed investors, who may have been persuaded to purchase unapproved products that were not suitable.
If you invested with former Morgan Stanley broker Sara Qazi or with any investment adviser or registered representative who sold you an unapproved private placement away from their firm, and this unauthorized transaction has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.