FINRA

Rahmani was named a respondent in a FINRA complaint alleging that he engaged in outside business activities (OBAs) through and on behalf of an entity without providing prior written notice to his member firm, Joseph Stone Capital L.L.C. The complaint alleges that the entity, which also operated under another name, advertised its business as marketing and selling shares of pre-initial public offering (IPO) companies to investors. Among other things, Rahmani solicited and met with prospective clients of the entity, which operated from the same office where he conducted his securities business. The complaint also alleges that Rahmani provided false or misleading information to FINRA in response to a written request for information in connection with its investigation of his undisclosed OBAs. Although FINRA requested that Rahmani identify all email addresses he used, as well as all bank accounts he controlled, he failed to disclose an email address that he used with a domain name from the entity's other name. Rahmani also failed to disclose the existence of bank accounts that he opened at approximately the same time the entity was formed. The complaint further alleges that Rahmani provided false or misleading information to FINRA during on-the-record testimony. Rahmani falsely testified that he had no involvement with the entity, that he never used an email address associated with the entity, despite the fact that he had already produced to FINRA emails sent to and from his email account with the domain name from the entity's other name, and that he had closed multiple bank accounts that he initially failed to disclose to FINRA. In addition, the complaint alleges that Rahmani failed to provide information and documents requested by FINRA. Following Rahmani's on-the-record testimony, FINRA continued its investigation and requested information and documents pertaining to the bank accounts that he previously opened. Rahmani failed to provide FINRA with all the requested information or documents for half of the accounts and failed to provide any information or documents whatsoever related to the remaining accounts.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

11/2/2021

Without admitting or denying the allegations, Rahmani consented to the sanction and to the entry of findings that he engaged in outside business activities (OBAs) through and on behalf of an entity that advertised its business as marketing and selling shares of pre-initial public offering (IPO) companies to investors without providing prior written notice to his member firm. The findings stated that Rahmani acted as an employee or independent contractor for the entity by soliciting prospective investors, meeting with at least one prospective investor, using an entity email account and using a debit card to withdraw funds from a bank account associated with the entity. In addition, Rahmani told the firm that he was not involved in the entity. The findings also stated that Rahmani provided incomplete information to FINRA in written responses by failing to cooperate with its investigation of his undisclosed OBAs. Although FINRA requested that Rahmani identify all email addresses he used, as well as all bank accounts he controlled, Rahmani failed to disclose an email address that he used with an entity domain name. Rahmani also failed to disclose the existence of four bank accounts that he opened at approximately the same time the entity was formed. The findings also included that Rahmani provided false or misleading information to FINRA during on-the-record testimony. Rahmani testified that he had no involvement with the entity, that he never used an email address associated with the entity, despite the fact that he had already produced to FINRA emails sent to and from his email account with an entity domain name, and that he had closed multiple bank accounts that he initially failed to disclose to FINRA. FINRA found that Rahmani failed to provide information and documents requested by FINRA. Following Rahmani’s on-the-record testimony, FINRA continued its investigation and requested information and documents pertaining to the bank accounts that Rahmani opened. Rahmani failed to provide FINRA with all the requested information or documents for two of the four accounts and failed to provide any information or documents whatsoever related to the remaining two accounts.