California Dept. of Insurance

Upon filing for renewal of CA Resident Life-only, Accident & Health Broker agent license in 2019, Mr. Tazhibi neglected to advise CA Insurance Dept. that he had been the subject of a FINRA Acceptance, Waiver & Consent (AWC) in 2017. When Mr. Tazhibi was renewing his license in 2021, he responded to renewal questions, and advised the California Insurance Dept. of the AWC from 2017. Upon discovering that he failed to notify them of this 4-year old issue ( already reported in our ADV filings), the CA Insurance Dept. suspended his license for two weeks. The suspension has since been lifted and Mr. Tazhibi is free to act as a Life, Accident & Health Insurance agent in the state of California.

Order

Suspension

Suspension of California Insurance Life, Accident & Health license ONLY

Two weeks

6/14/2021

6/26/2021

FINRA

Without admitting or denying the findings, Tazhibi consented to the sanctions and to the entry of findings that he made an unsuitable recommendation to two retail customers, a recently retired married couple, that they invest approximately $135,000 in a non-investment grade, speculative-rated municipal bond intended by the issuer only for sale to institutional buyers. The findings stated that when Tazhibi recommended the bond to them, the customer had an investment profile that included an investment objective of income and growth and a conservative risk tolerance. In addition, although the bond was intended only for sale to approved institutional buyers, the customers were individual retail customers and did not qualify as approved institutional buyers. Tazhibi's recommendation that the customers invest in the bond was inconsistent with their financial situation and objectives and the intended market for the bond. In light of these factors, Tazhibi lacked a reasonable basis to recommend the bond to the customers and failed to deal fairly with them. The bond was later canceled based on a restructuring agreement with the bondholders and Tazhibi's member firm paid restitution to the customers to compensate them for their losses.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Suspension

all capacities

two months

9/18/2017

11/17/2017

Claimants allege that on 6/19/13 FA made unsuitable recommendations in the purchase of Thomas Jefferson Law School bond.

$132,631.20

$100,000.00