Irvine Stockbroker Willfully Fails to Disclose Tax Liens

Mehran Sadri of Morgan Stanley received a fine and suspension for willful failure to disclose a $70,000 IRS tax lien on his Form U4, hiding this important fact from the investing public. FINRA requires that stockbrokers disclose important facts that would affect whether an investor would do business with a broker on Form U4. The information then becomes available to investors through BrokerCheck, an online stockbroker database FINRA maintains. Mr. Sadri may have been (understandably) worried that investors would not be willing to trust their money to a stockbroker who lacked the financial foresight to remain current on his taxes.

If a stockbroker is in serious financial straits, they may be more willing to engage in other behavior which enriches the stockbroker at his clients’ expense. Mr. Sadri, for example, has been accused of making excessive, unsuitable trades in client accounts. If you believe you have suffered losses due to an unethical stockbroker, contact the attorneys at Investor Defense Law LLP free of charge to find out whether you have a claim.

Investor Defense Law LLP is a law firm dedicated to helping investors in California, Georgia, and Washington recover losses caused by stockbrokers, financial advisers, or investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.