Securities Lawyers Blog
According the BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) the agency suspended former Global Arena Capital Corp (Global Arena) broker Niaz Elmazi a/k/a Nick Morrisey (Morrisey) concerning allegations that Morrisey failed to respond to FINRA’s requests for information.
Morrisey has a history of regulatory complaints and also has one customer complaint on his record. In 2013, the state of Arkansas brought action against Morrisey alleging that in July 2012, Morrisey contacted an Arkansas resident via a cold call in order to recommend the purchase of a corporate bond issued by Verso Paper Corp (Verso). However, Morrisey was unaware that the Arkansas resident was actually employed as a senior securities examiner with the Arkansas securities department and that he had contacted the examiner on an office phone during business hours. During the conversation it was alleged by Arkansas that Morrisey made untrue and false statements when recommending the Verso bond. In addition, Arkansas alleged that Morrisey had no reasonable grounds for believing that the recommendation was suitable for the investor prior to making the recommendation.
All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.