In an Offer of Settlement, Halil Kozi, of North Middletown, New Jersey has been suspended for two years by the Financial Industry Regulatory Authority (FINRA) for excessive trading, known as churning, and unsuitable options recommendations and trades.
From June 2013 through February 2015, Halil Kozi was associated with PHX Financial, Inc. (PHX). According to FINRA, Mr. Kozi recommended transactions in a customer’s account that were quantitatively unsuitable and excessive and inconsistent with the customer’s risk profile or financial situation. FINRA found that Mr. Kozi recommended risky, speculative equity and options transactions that generated commissions of more than $135,000 while causing the customer to incur losses of $72,000. By recommending quantitatively unsuitable excessive trading for the customer’s account, Mr. Kozi allegedly violated FINRA Rules 2111 and 2010. Without admitting or denying FINRA’s findings, Halil Kozi consented to the sanctions and was suspended from association with any FINRA member for two years. The suspension is in effect from April 6, 2020 through April 5, 2022. No monetary sanctions were issued due to Mr. Kozi’s financial status.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from churning/excessive trading, unsuitable recommendations and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like PHX Financial, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your PHX Financial account due to churning/excessive trading and/or unsuitable recommendations by your broker? Was Halil Kozi your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against PHX Financial stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
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