The Financial Industry Regulatory Authority (FINRA) has permanently barred Masood Azad, a former First Allied Securities broker in League City, Texas. In November 2017, he was sanctioned by FINRA following allegations he refused to provide requested documents in connection to allegations that while associated with First Allied, he participated in an unapproved private securities transactions “by soliciting investments and/or directly investing in an electronic data security company and participated in other outside business activities, involving this company, without obtaining firm authorization.” In May 2017 he was terminated from his position at First Allied Securities following allegations he violated firm policy with respect to borrowing funds from customers, and participating in an unapproved private securities transaction and outside business activity. These are against securities laws and internal firm rules.
Sometimes referred to as “selling away,” this is when a broker recommends or sells a security that is not held or offered by his member firm. He does this in order to not have to share the commissions with his member firm. It is against securities laws, and First Allied Securities, Azad’s former firm, may be liable for losses in the FINRA arbitration forum on a contingency fee basis, because the firm failed to reasonably supervise Mr. Azad while he was registered there, allowing him to violate securities laws.
Masood Azad, also known as Mike Azad, was previously registered with Voya Financial Advisors in League City, Texas from August 2004 until January 2015 and First Allied Securities in League City from January 2015 until June 2017. He has been permanently barred from the industry, according to FINRA public records online.
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