Doron Kochavi Suspended over Trading Allegations

Doron Kochavi (CRD# 1011155[1]), formerly a broker registered with Western International Securities, mischaracterized securities transactions, according to a disciplinary action against him. MDF Law is investigating the former Pasadena, California-based financial professional for similar conduct. We urge investors with concerns about their accounts to contact us for a free consultation.

To learn more about the allegations against Mr. Kochavi, continue reading this post. The below information is based on a February 12, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record.

FINRA: Kochavi Marked Solicited Trades as Unsolicited

FINRA filed a disciplinary action against Mr. Kochavi on January 16, 2024. According to a Letter of Acceptance, Waiver, and Consent (# 2021071099403[2]), he mischaracherized a total of 1,586 trades “as unsolicited when, in fact, [he] solicited the customer to participate in the transactions.” The alleged mischaracterizations took place between January 2017 and April 2019, while he was registered with Western International Securities. As FINRA found, his conduct resulted in his firm making and preserving inaccurate records. 

As a result of his alleged mischaracterizations, FINRA suspended Mr. Kochavi from acting as a broker for a total of two months. It also ordered him to pay a fine of $10,000. His suspension commenced on February 5, 2024 and will conclude on April 4, 2024.

Understanding FINRA Rule 4511

Under FINRA Rule 4511, member firms are required to make and preserve books and records that indicate the terms and conditions of every trade—including whether it was solicited or unsolicited. “Inherent in the obligation to make and preserve books and records is the requirement that they be accurate,” the AWC Letter states. “A registered representative who causes a firm to make and preserve false or inaccurate books and records violates FINRA Rule 4511.”

As FINRA explains, violations of FINRA Rule 4511 constitute violations of FINRA Rule 2010. Under this rule, registered representatives must observe high standards of commercial honor and just and equitable principles of trade.

Dispute Involving Doron Kochavi Settled for $2.8 Million

On October 17, 2019, an investor filed a dispute involving Mr. Kochavi. In this claim, the customer alleged that he breached his fiduciary duty with regard to the sale of common stock investments. In February 2021, his former member firm settled the dispute for a total of $2.8 million.

FINRA: Kochavi Last Based in Pasadena

Doron Kochavi launched his career as a broker in 1981, when he registered with Drexel Burnham Lambert. He left the firm that same year for Wedbush Morgan Securities’ office in Los Angeles, where he remained until 1991. Over the following decades, he worked at firms including C.S. First Boston Securities, J.P. Morgan Securities, and UBS Financial Services. He joined his most recent member firm, Western International Securities, in 2015, working out of its Pasadena, California office until January 2024. With 42 years of experience as a broker, he has completed three industry exams, including the Series 7 and the Series 63. 

MDF Law Advocates for Investors

Did you lose funds you couldn’t afford to lose on investments recommended by Doron Kochavi? Were you left unaware of risks associated with certain products, or were trades improperly conducted in your accounts? You may have grounds to lodge an arbitration claim to recover losses. With a record of tens of millions recovered for the victims of broker fraud, MDF Law accepts cases on contingency and offers free consultations nationwide. Call 800-767-8040 to speak with our team today.