During the period November 2018 and February 2019, the customer alleges that the Registered Representative recommended a speculative, high-risk, illiquid and unrated investment.

$83,000.00

$28,800.00

FINRA

Without admitting or denying the findings, Kassaei consented to the sanction and to the entry of findings that he participated in undisclosed and unapproved private securities transactions through which individuals, most of whom were customers of his member firm, invested at least $2.6 million in real-estate businesses. The findings stated that the owner of the real-estate businesses had previously worked with Kassaei at the firm. The firm had not approved Kassaei's participation in these security sales, they were not recorded on the firm's books and records, and Kassaei acted outside the regular course and scope of his employment with the firm when participating in the securities transactions. Subsequently, the owner pled guilty to wire fraud, admitting that he had engaged in a real-estate Ponzi scheme that caused approximately $12 million in investor losses. The individuals in whose investments Kassaei participated lost at least $1.3 million. The owner paid Kassaei substantial sums, including at least $125,000 while he facilitated securities transactions between the owner and these individuals. In addition, in response to a specific inquiry by the firm, Kassaei falsely represented that he had not participated in a customer's private securities transactions totaling $500,000. The findings also stated that Kassaei refused substantially to comply with FINRA's request for on-the-record testimony, documents, and information. FINRA had opened an investigation of Kassaei's involvement in the owner's scheme. While Kassaei initially appeared for testimony, he ultimately refused to answer its questions, left the testimony, and did not reappear to finish answering the questions. Moreover, FINRA requested that Kassaei produce emails from an email account that he had used to facilitate private securities transactions with the owner. Kassaei initially granted FINRA access to the account to obtain the requested emails, but then terminated its access to the account before FINRA had obtained the requested emails and deleted emails in the account.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

9/22/2020

$31,395.00

Tax

IRS WAS NOT SUPPOSED TO PLACE A LIEN, AS I AM ON A PAYMENT PLAN AND IN THE PROCESS OF REMOVAL.

$47,955.43

Tax

IRS WAS NOT SUPPOSED TO PLACE A LIEN, AS I AM ON A PAYMENT PLAN AND IN THE PROCESS OF REMOVAL.

UNSUITABLE RECOMMENDATIONS, MISREPRESENTATION, NEGLIEGENCE, FRAUD AND BREACH OF FIDUCIARY DUTY.

$84,000.00

I VEHEMENTLY DENY ALL ALLEGATIONS. NO FINES OR PENALTIES WERE IMPOSED BY FINRA OR OTHER REGULATORY AGENCIES.

NON-SUFFICIENT FUNDS/CHECKS, STATUTE 205.130

Dismissed