17, October 2017

FINRA Suspends Ex-Citi Broker for Supposed Inappropriate Muni Bond Suggestion

A previous Citigroup broker was suspended for 2 months and fined $10,000 for presumably making an inappropriate suggestion to 2 of the bank’s retail consumers, according to his settlement with FINRA recently.

Mehran Tazhibi, a monetary consultant with Citigroup in Albany, California, suggested that a just recently retired couple invest around $135,000 in a non-investment grade community bond meant by the company just for sale to institutional purchasers, FINRA declared.

Earnings from the bond offering would finance the acquisition and building and construction of a multi-story building for the Thomas Jefferson School of Law’s brand-new school in San Diego, according to FINRA. The bond was to grow in October 2032 and pay interest at a yearly rate of 7.25%.

When Tazhibi suggested in July 2013, the bond had currently been devalued to a speculative credit score of BB, according to FINRA.

FINRA scolded Tazhibi for advising a financial investment that was at chances with his clients’ monetary scenario and the bond’s designated market. The couple had an interest in investing for earnings and development and had a conservative danger tolerance, FINRA stated.

” Tazhibi did not have an affordable basis to think that the non-investment grade, speculative-rated bond appropriated,” FINRA composed in the settlement. You must know how to drop domestic violence charges in california.

Tazhibi might not be reached. His lawyer, Peter Boutin of San Francisco law office Keesal, Young & Logan, did not react to an e-mail looking for the remark.

In his settlement with FINRA, Tazhibi neither confessed nor rejected the accusations but granted an entry of FINRA’s findings.

Tazhibi worked for Citigroup from June 2010 to September 2013 and was signed up with Citigroup Global Markets throughout that time, according to BrokerCheck records. He consequently worked for Merrill Lynch, Bank of America and Fidelity Brokerage Services.

Danielle Romero-Apsilos, a spokesperson for Citigroup, decreased to talk about the matter.