FINRA Suspends and Fines Former Morgan Stanley Advisor for Private Securities Transaction

The Financial Industry Regulatory Authority suspended and fined former Morgan Stanley advisor Sara Qazi after she participated in a private securities transaction in which a firm customer purchased $250,000 of preferred stock in a healthcare company.

According to FINRA, Qazi did not provide written notice to Morgan Stanley prior to participating in the private securities transaction, and Morgan Stanley did not approve Qazi’s participation in the transaction. Therefore, Qazi violated FINRA Rules 3280 and 2010.

In addition, from June through July 2020, Qazi distributed a written presentation prepared by the same healthcare company to five individuals, including one Morgan Stanley customer, which included information regarding a private offering by the company. The presentation did not disclose any of the risks associated with an investment in the company’s private offering.

In June 2020, Qazi also distributed a financial model prepared by the healthcare company to a Morgan Stanley customer, which contained financial forecasts but did not disclose any risks, limitations or conditions that could impede the achievement of such forecasts.

Qazi consented to a three-month suspension from associating with any FINRA member in all capacities and a $15,000 fine.

According to BrokerCheck, Qazi was most recently affiliated with Raymond James after leaving Morgan Stanley. Prior to that, she was affiliated with UBS Financial Services and Credit Suisse First Boston.

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