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FINRA Sanctions Miami Broker Kawa Foad: Outside Business

Former Questar Capital broker Kawa Foad (CRD# 5374361) has been sanctioned by the Financial Industry Regulatory Authority in connection to  allegations he was involved in two undisclosed outside business activities. Formerly associated with the firm’s branch office in Miami, Florida, Foad was issued a three-month suspension and a fine of $7,500.

According to a Letter of Acceptance, Waiver and Consent (No. 2018059134401) dated December 2019, Kawa Foad was associated with Questar Capital Corporation as a Corporate Securities Representative and a General Securities Representative from January 2014 until July 2018. FINRA’s findings state that between February 2016 and July 2018, he participated in two outside business activities for which he did not provide his firm with prior written notice. In one of the activities, he founded a law firm with a friend of his from law school in April 2018. FINRA states that he owned 49% of the firm, while his partner held the remaining 51%. Both received salaries from the firm, with Foad receiving approximately $18,000 during the period in question, according to FINRA. His services included the negotiation and drafting of agreements, board minutes, and other documents, according to FINRA, which states that the firm “also handled several litigation matters,” and that he terminated his affiliation with the firm in October 2018. 

The second outside business activity, according to FINRA, constituted Foad’s employment at a healthcare technology company that provided a platform for insurance claims processing. FINRA states that his duties included the scanning and uploading of documents, which he “typically” performed “at his home during non-market trading hours.” He earned about $90,000 from this company during the period in question, according to FINRA, which that he did not provide his firm with prior written notice about either outside business activity, and that he certified on two annual compliance questionnaires during the period in question “that he would not engage in any outside business activity without prior notification to and written consent from Questar.” As a result of the foregoing alleged conduct, he was issued a three-month suspension from associating with any FINRA member firm. He was also issued a fine of $7,500.

Kawa Foad is currently not registered as a broker. His previous registrations include Questar Capital Corporation, National Securities Corporation, VFinance Investments, Aura Financial Services, and NSM Securities. He has passed four securities industry qualifying examinations and his BrokerCheck report lists zero state securities licenses. (Information current as of May 12, 2020.)

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