David Khezri Permanently Barred By FINRA

David Khezri (CRD# 2736831) is a previously registered broker whose last employer was Network 1 Financial Securities Inc. (CRD#:13577) of Hauppauge, NY. His previous employers include Worden Capital Management LLC (CRD#:148366) of Melville, NY, Joseph Stone Capital L.L.C. (CRD#:159744) and Cape Securities Inc. (CRD#:7072), both of Holbrook NY. Currently, Khezri is neither registered nor associated with any FINRA member firm.

Five of Khezri’s former employers have been expelled by FINRA:

EKN Financial Services Inc. (CRD#:113525), Melville, NY, expelled on 10/12/2012
com Corp (CRD#:18281), Farmingville, NY, expelled on 8/19/2010
Seaboard Securities, Inc. (CRD#:755) of Florham Park, NJ, expelled on 2/11/2011
J. Meyers & Co., Inc. (CRD#:15609) of Rochester, NY, expelled on 03/01/1999
Investors Associates, Inc. (CRD#:958) of Hackensack, NJ, expelled on 05/14/1998

He has been in the industry since 1996.

David Khezri has a customer dispute disclosure in his CRD dated 3/15/2021, alleging unsuitable excessive trading and churning, as well as common law fraud, breach of contract, and other misconduct. The client has requested damages of $187,000. This claim is currently pending.

After the customer filed this dispute, FINRA opened an inquiry, and requested documents and information related to the dispute on November 3rd, 2021. On November 16th, 2021, in a call between FINRA and Khezri’s council, he acknowledged the receipt of FINRA’s request and stated that he would not produce the requested information or documents at any time. Refusing to provide this information, Khezri was in violation of FINRA’s rules 8210 and 2010.

In a letter of Acceptance, Waiver, and Consent, (AWC), FINRA then barred David Khezri from associating with any FINRA member broker in all capacities, indefinitely, and permanently, effective 12/23/2021. Khezri signed the letter on 12/6/2021, neither confirming nor denying the allegations, and accepted the imposed sanctions.

A previous customer dispute filed on March 6, 2020, is also still listed as “pending.” In it, the client alleges a breach of fiduciary duty and negligence, and requests damages of $235,635.00. No additional information is available.

Khezri has two previous disciplinary actions. The first is another FINRA action, filed on 9/24/2015, stating that Khezri improperly exercised discretion with approximately 100 trades for six customers without obtaining previous written authorization from them. He also failed to have the accounts accepted as discretionary by his employer at the time, Cape Securities. Khezri exercised discretion by executing these trades just days after his customers gave him verbal permission to do so. However, the firm did not permit discretionary trading except for registered investment advisors trading in the accounts of their advisory client. At the time, Khezri was not a registered investment advisor. FINRA imposed a $5,000 fine and a 30-day suspension from association with any FINRA member in any capacity. Khezri agreed to these sanctions and signed the AWC letter on 9/11/2015.

Two years later, on 6/27/2017, the Maryland Division of Securities denied Khezri’s application after he failed to show cause of the prior disciplinary history from FINRA. Khezri’s response was that he was unable to respond on time to the division’s request for information because of ongoing family health issues but would reapply and provide the requested information.

Did You Invest With David Khezri?

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