The Financial Industry Regulatory Authority suspended an ex-Lincoln Financial broker after he engaged in unauthorized business activity involving an insurance company he owned and the Woodbridge Group of Companies Ponzi scheme despite being specifically prohibited by Lincoln from conducting that outside business activity, according to FINRA.
Without admitting or denying the regulator’s findings, Imran Nazir Razvi signed a FINRA letter of acceptance, waiver and consent Feb. 21 in which he agreed to a six-month suspension from associating with any FINRA member firm and a $5,000 fine. FINRA accepted the letter Thursday.
From April 2017 through March 2018, Razvi was registered as a general securities representative through his association with Lincoln, according to FINRA.
It was not immediately clear why he left Lincoln. However, there were two customer disputes involving him during his year at the firm, according to his profile on FINRA’s BrokerCheck website. In both cases, the clients claimed he made unsuitable investments and failed to disclose the risks of those non-registered investments. In one case, the customer requested $100,001 and settled for $67,486. In the other case, there was a settlement for $32,514.
Lincoln declined to comment Friday. There was no attorney listed on the FINRA AWC letter as Razvi’s representative.
In April 2014, Razvi started “Company A” to offer insurance products to customers; in addition to owning that firm, he served as its president, according to FINRA. In that capacity, Razvi supervised several insurance agents working for Company A.
As Lincoln’s procedures required, Razvi sought approval from it to participate in an outside business activity involving Company A, FINRA said. In particular, Razvi sought approval to use Company A to refer investors to the Woodbridge Group.