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Were You the Victim of Former Joseph Stone Capital L.L.C Broker David Khezri?

Posted on Tuesday, November 24th, 2020 at 9:00 pm    

Joseph Stone Capital L.L.C.

Erez Law is currently investigating former Joseph Stone Capital L.L.C. broker David Khezri (CRD# 2736831) for investment losses. Khezri has been registered with Network 1 Financial Securities Inc. in Hauppauge, New York since March 2020. Previously, Khezri was registered with Worden Capital Management LLC in Melville, New York from 2017 to 2020 and with Joseph Stone Capital L.L.C. in Holbrook, New York from 2015 to 2017.

In June 2017, the Maryland Division of Securities opened an investigation, alleging “Order to show cause due to disciplinary history disclosed on CRD.” Khezri’s registration was denied.

In September 2015, FINRA sanctioned Khezri to a $5,000 civil and administrative penalty and fine and suspended him for 30 days regarding the following allegations: Without admitting or denying the allegations, Khezri consented to the sanctions and to the entry of findings that he improperly exercised discretion by effecting approximately one-hundred trades for six customers without obtaining prior written authorization from the customers and without having the accounts accepted as discretionary by his member firm. Khezri exercised discretion by executing trades days after his customers provided him oral authority to do so. The findings stated that Khezri’s firm did not permit discretionary trading except for registered investment advisors trading in the accounts of their advisory clients and Khezri was not a registered investment advisor.

Khezri has been the subject of two customer complaints between 2005 and 2020, according to his CRD report. The most recent complaint is regarding: 

March 2020. “Breach of Fiduciary Duty, Negligence.” The customer is seeking $235,635 in damages and the case is currently pending. The complaint was regarding equity OTC and took place while Khezri was registered with Joseph Stone Capital, LLC. 

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, Joseph Stone Capital L.L.C may be liable for investment or other losses suffered by Khezri’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.