Azmi Sharif: Ex-LPL Advisor Suspended over Crypto Investments

Oakbrook Terrace, Illinois financial advisor Azmi Sharif (CRD# 6481342) was recently suspended in connection with alleged rule violations. Financial Industry Regulatory Authority records show that the KCD Financial broker and Fourstar Wealth advisor was previously registered with LPL Financial, which fired him in 2022.

A Letter of Acceptance, Waiver, and Consent (No. 2022076175702) describes FINRA’s disciplinary action against Mr. Sharif. Filed in June 2024, it states that as a representative of LPL Financial, he facilitated private securities transactions without providing prior notice to his member firm. The transactions in question constituted investments of about $900,000 by eight individuals, including seven firm customers, in the purchase cryptocurrency asset mining equipment, “among other things.” He discussed the investment with the customers in 2022 during a video call, according to FINRA, which notes that he “was a founding investor and employee in a crypto asset mining company” and that he held the call with his business partner. “Sharif did not notify LPL of the transactions,” the letter states, continuing: “Before the company was able to reach its funding goal, it changed its business model, and the customers complained to LPL. Sharif received no selling compensation in connection with his participation in the transactions.”

FINRA found that his facilitation of these transactions constituted a violation of FINRA Rule 3280, which requires associated persons to provide their member firm with prior written notice of their intended participation in private securities transactions. It also found that his conduct violated FINRA Rule 2010, under which associated persons must “observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.” As such, FINRA suspended Mr. Sharif from associating with any FINRA member in all capacities for a period of nine months. It also ordered him to pay a fine of $5,000.

Mr. Sharif’s BrokerCheck report discloses one investor complaint. Filed in 2022, it alleged that as a representative of LPL Financial, he misrepresented and recommended an unsuitable private placement investment. The complaint reached a settlement of $500,000.

According to the Financial Industry Regulatory Authority, Azmi Sharif holds seven years of securities industry experience. Based in Oakbrook Terrace, Illinois, he has been registered as a broker with KCD Financial and an investment advisor with Fourstar Wealth Advisors since 2023. His past registrations include Nobles & Richards, LPL Financial, and Woodbury Financial Services. His credentials include the passage of three securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Combined State Law Examination, or Series 66. He is licensed in Illinois. (Information current as of June 27, 2024.)

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