According to Finra, the broker named Daniel Beech, originally met the unregistered broker, referred to as "Individual A" in the complaint, while both were working at Royal Alliance Associates in Los Angeles back in 2013.
It is believed that Individual A is Angelo Talebi, an advisor who worked alongside Beech at the same time. Talebi, who hosted television and radio shows for the Persian community, had a substantial client base within the community. These clients later became clients of Beech as well, as stated by Finra.
Co-Named in Client Complaints
Both Beech and Talebi have been mentioned in a client complaint and have been connected by attorneys representing clients who claim to have suffered due to their advice. Finra's complaint against Beech reveals that Individual A was fined and suspended for two months in December 2015 for trading in a customer's online account at a brokerage firm, despite not being employed by that particular firm. Records show that Talebi was also subject to disciplinary proceedings under similar circumstances.
Responses and Current Status
At the time of writing, Beech has not responded to email or LinkedIn messages seeking comment. The firm he is currently registered with, Innovation Partners, did not provide phone availability nor did it respond immediately to a request for comment. Talebi could also not be reached for comment. He is currently registered with the Securities and Exchange Commission as an investment advisor at Beverly Hills Financial Planners. However, an individual at the firm stated that Talebi is currently out of the country. Talebi has also not responded to phone messages or a LinkedIn message.
Allegations and Timeline
According to Finra, Beech became Talebi's sales assistant in November 2013. They shared a billing code, and Beech received 25% of the commissions earned through making recommendations to Talebi's clients.
In April of the following year, Talebi moved to Independent Financial Group, and Beech followed suit in December, once again working as his sales assistant.
Investigation Alleges Violations by Financial Professionals
Finra further asserts that Beech violated its rule governing professional conduct as well as Rule 2040. Rule 2040 states that no associated person can pay compensation or fees to an individual who is not registered as a broker-dealer.
Following the book sale, Beech joined Western International Securities in May 2016. From that time until January 2023, Beech allegedly paid $900,000 in commissions to Talebi, who Finra claims actively participated in soliciting and servicing clients despite not being registered with any brokerage.
Finra outlines that Beech expected Talebi, referred to as "Individual A," to continue providing customer support for the clients involved in the purchase agreement. This included answering customer questions about specific securities investments and facilitating communication by translating from English into Farsi and vice versa.
The regulator alleges that Talebi remained active in Beech's practice, attending client meetings together and having independent meetings with clients to discuss specific investments made through Beech.
As a result of these allegations, Finra is seeking confirmation from an arbitration panel that Beech engaged in the conduct described and requesting a monetary penalty.
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