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FINRA Again Bars Yousuf Saljooki After Multiple Allegations

We’ve reported on Yousuf Saljooki (CRD#: 5045123, aka Joe Saljooki, and Joseph Saljooki) on two previous occasions regarding his two suspensions by the State of Arkansas and subsequently by FINRA for many of the same infractions. Even though Worden Capital discharged Saljooki in 2018, additional actions were recently filed against him. In a FINRA arbitration action dated 3/4/2019, Saljooki, along with several other respondents, were the subject of a claim described as: Fraud, negligent misrepresentation, suitability, failure to supervise, negligence, gross negligence, breach of contract, breach of fiduciary duty, breach of covenant of good faith and fair dealing, violation of industry standards, elder abuse, respondeat superior, and unjust enrichment. The causes of action relate to Claimant’s allegations that during a three-year period Respondents recommended over three hundred (300) buys and sells, primarily of OPKO Health, Inc., Melco Resorts and Entertainment Limited, and SolarCity, while utilizing margin with each trade, resulting in Claimant paying significant commissions. . . .We’ve reported on Yousuf Saljooki (CRD#: 5045123, aka Joe Saljooki, and Joseph Saljooki) on two previous occasions regarding his two suspensions by the State of Arkansas and subsequently by FINRA for many of the same infractions.

Even though Worden Capital discharged Yousuf Saljooki in 2018, additional actions were recently filed against him.

In a FINRA arbitration action dated 3/4/2019, Saljooki, along with several other respondents, were the subject of a claim described as:

Fraud, negligent misrepresentation, suitability, failure to supervise, negligence, gross negligence, breach of contract, breach of fiduciary duty, breach of covenant of good faith and fair dealing, violation of industry standards, elder abuse, respondeat superior, and unjust enrichment. The causes of action relate to Claimant’s allegations that during a three-year period Respondents recommended over three hundred (300) buys and sells, primarily of OPKO Health, Inc., Melco Resorts and Entertainment Limited, and SolarCity, while utilizing margin with each trade, resulting in Claimant paying significant commissions. . . .

After one such related transaction, the client’s entire investment was lost.

FINRA assigned Saljooki an award to the client of $706,793.84 in this case. As of March 31, 2020, the award has not been paid, leading to an indefinite suspension until it is.

A disciplinary action from FINRA’s Department of Enforcement dated 7/29/2019 addressed:

  • Saljooki’s failure to disclose an unsatisfied federal tax lien in the amount of $227,859.00 between 12/17/2017 and 1/16/2018, as required. He also failed to update his Form U4 as requested by Wolden. The firm updated his form on 2/23/2018.
  • Also between 12/2017 and 4/1018, Saljooki recommended and executed transactions for nine customers in different states where he was not licensed to sell securities. He executed those transactions using the code of another registered representative who had licensure in those states. As a result of this action, Worden’s books and records were incorrect due to Saljooki’s violations of FINRA rules 4511 and 2010.
  • During FINRA’s investigation into Saljooki’s improper use of another representative’s code, he did not respond to multiple requests by FINRA for documents and information.

Separately, FINRA issued an Acceptance, Waiver & Consent letter to Saljooki, which he signed on 7/2/2019. This letter included an administrative fine of $20,000 and a nine-month suspension that ended 5/4/2020.

Another FINRA disciplinary action regarding Yousuf Saljooki’s failure to comply with the award of $706,793.84 led to an indefinite suspension beginning 3/31/2020, until heh pays the award in full.

A different customer filed a dispute on 4/2/2020, alleging:

“Unsuitability; over-concentration; churning; excessive trading; commission abuse; failure to supervise; breach of fiduciary duty; negligence; fraudulent misrepresentation; breach of contract; respondeat superior; lost opportunity damages; and violation of the California Elder Abuse and Dependent Adult Civil Protection Act, Churning, Excessive Commissions, Unsuitable Trading, Over-concentration, Fraud, Negligence.”

The client requested damages of $97,292.27. In the dispute resolution arbitration, FINRA awarded the client the sum, jointly and severally from Saljooki and another respondent, as well as interest in the amount of 10% per annum from 2/11/2020 until the amount is fully paid. Additional awards include $12,500.00 in punitive damages pursuant to CA Civil Code section 3294 and the CA Elder Abuse and Dependent Adult Civil Protection Act, and attorney’s fees of $11,500 from both individuals.

In another action originally filed on 4/7/2020, FINRA began an investigation into possible undisclosed outside business activities (OBA) by a person related to Saljooki during his association with Worden. Information obtained from the relative indicated that Saljooki himself was involved in OBAs. On four occasions, Saljooki failed to appear as requested for on-the-record testimony in the investigation, claiming his wife’s pregnancy, the subsequent newborn, and the coronavirus pandemic as reasons for failing to appear. He also failed to respond to repeated requests for information related to the investigation despite multiple opportunities. In the final decision on 11/12/2020, FINRA indefinitely barred Yousuf Saljooki from any and all association with a member firm in all capacities.

Another FINRA sanction for failing to comply with another award led to a second bar, indefinite and effective on 11/11/2020.

Worden Capital Churning Complaints

Two new customer disputes were filed on 11/15/2020 and 11/19/2020, respectively. Both had with similar allegations of churning, unsuitability, breach of fiduciary duty and contract, and unauthorized trading. The first client’s requested damages are $49,184.62, and the second damage request totals $130,165.00. Both disputes are currently listed as “pending,” and no additional information is available.

Have You Invested With Yousuf Saljooki?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.

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