South Florida Arbitration & Litigation Lawyer Blog
Investment and Securities Fraud and Mismanagement FINRA Arbitration Attorney, Russell L. Forkey, Esq.
January, 2011:
Mahmood Hasan Usmani, (CRD #5727193, Associated Person, Bartlett, Tennessee) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity and ordered to disgorge $24,286.67 in unlawful profits. Without admitting or denying the findings, Usmani consented to the described sanctions and to the entry of findings that by purchasing an issuer’s stock while in knowing possession of material, non-public information, directly or indirectly, by use of means or instrumentalities of interstate commerce, he intentionally or recklessly employed a device, scheme or artifice to defraud or engaged in an act, practice or course of business which operated, or would operate, as a fraud or deceit in connection with the purchase or sale of a security. The findings stated that prior to the public announcement of the tender offer for a security and after a substantial step or steps to commence the tender offer had been taken, Usmani purchased the issuer’s securities while in possession of material information relating to the offer, which he knew or had reason to know was non-public and had been acquired directly or indirectly from a person acting on the offering person’s behalf; the issuer of the securities sought or to be sought by the tender offer; or an officer, director, partner, employee, or other person acting on the offering person’s or such an issuer’s behalf. The findings also stated that Usmani failed to notify his member firm, in writing, of the existence of his personal securities accounts, in which he had a financial interest and maintained at another FINRA member firm, and failed to notify the other member firm, in writing, of his association with his member firm. The findings also included that Usmani failed to respond to FINRA requests for information and documents. (FINRA Case #2010022476001).