A former Morgan Stanley advisor has been suspended for three months and fined $15,000 by the Financial Industry Regulatory Authority for allegedly participating in the sale of an outside investment without the firm’s approval.
Sara Qazi, who is now with Raymond James, allegedly assisted a customer with buying $250,000 of preferred stock in a healthcare company without Morgan Stanley’s knowledge or approval, according to Finra. The customer did not file a complaint and Qazi did not earn any commission from the transaction, according to BrokerCheck.
The Beverly Hills, Calif., advisor, who has 21 years of experience, agreed to pay a $15,000 fine and to be suspended from securities registration in all capacities for three months beginning Dec. 18 to settle the incident without admitting nor denying guilt, Finra said.
The events surrounding the transaction happened from March 2020 through June 2020 and involved a Morgan Stanley customer who bought $250,000 worth of stock, according to Finra.
At the customer’s request, Qazi, who started with Morgan Stankey in 2008, conducted due diligence on the healthcare company by reviewing its financial data and arranging and attending due diligence calls with its management and other investors, according to Finra.
In addition, Qazi facilitated the customer’s investment by assisting with the execution of agreements related to the transaction and arranging the wire transfer of the customer’s funds, Finra said.
“Qazi did not earn any compensation from her participation in the transaction,” Finra said.
Qazi also distributed a written presentation on a private offering prepared by the healthcare company to another firm customer, the regulator said.
“The presentation did not disclose any of the risks associated with an investment in the healthcare company’s private offering,” Finra said.
Qazi also distributed a financial model prepared by the healthcare company to a firm customer that “contained financial forecasts but did not disclose any risks, limitations, or conditions that could impede the achievement of such forecasts,” Finra said.
