Former First Allied Securities broker Masood Azad (CRD# 4798445) is accused of false and misleading statements causing his clients to suffer investment losses. Azad was registered with First Allied Securities in League City, Texas from 2015 to 2017, when he was terminated regarding, “RR violated firm policy relating to borrowing money from clients, engaging in an unapproved private securities transaction and outside business activity.” Prior to that, Azad was registered with Voya Financial Advisors, Inc. in League City, Texas from 2004 to 2015.
According to public records, a former client of Azad and First Allied Securities filed a FINRA arbitration alleging more than $1 million in damages related to making false and misleading statements leading his clients to purchase investments. One of the investments that Azad allegedly recommended his clients invest in is a company owned by his own son-in-law. It is also alleged that Azad lied about the nature of the investments.
In November 2017, FINRA barred Azad after he consented to the sanction and to the entry of findings that he, “failed to provide FINRA requested documents and information in connection with its investigation into allegations of misconduct by Azad while associated with his member firm. The findings stated that the allegations included that Azad participated in an unapproved private securities transaction by soliciting investments and/or directly investing in an electronic data security company and engaged in outside business activities involving the company without obtaining authorization from the firm.”
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, First Allied Securities may be liable for investment or other losses suffered by Azad’s customers.