According to FINRA, Bennett Robert Zamani was assessed a deferred fine of $27,500 and suspended for 14 months for operating an undisclosed outside business activity and using unapproved electronic communications with customers.

Zamani owned and operated a company offering subscription-based investment content without providing notice to his member firm. On the company's website, which Zamani established and operated, he maintained a blog with investment-related content and a publicly available YouTube channel with investment-related videos. Zamani published content to the blog under his name or an alias and appeared in videos on the YouTube channel. He also authored newsletters with investment-related content that he distributed to subscribers. While registered through the firm, Zamani earned approximately $360,000 from this activity.

Zamani submitted compliance questionnaires to the firm falsely stating he had fully disclosed his outside business activities. The investment-related communications he disseminated to the public, including firm customers, failed to comply with FINRA content standards because they contained misleading and promissory statements and made recommendations without providing a sound basis for evaluating the facts.

Additionally, Zamani used a personal text messaging application not approved by the firm to engage in business-related communications with firm customers. These communications included securities recommendations, account performance, account fees, and market events. In certain text messages, Zamani obtained personal confidential information from firm customers, including driver's license information, dates of birth, and social security numbers. Zamani also submitted compliance questionnaires falsely stating he did not use personal electronic equipment to conduct firm business.

This case involves multiple serious violations. The undisclosed outside business activity generated substantial income ($360,000) and involved investment content directed at the public and firm customers. The content was misleading and violated FINRA standards. The false compliance questionnaire responses demonstrate intentional concealment. The use of unapproved text messaging for business communications prevented the firm from supervising his communications and maintaining required records. Obtaining sensitive personal information through unapproved channels created cybersecurity and privacy risks.

For investors, this case illustrates the risks of financial professionals who operate investment content businesses outside their firm's supervision. Investment recommendations and content provided through such businesses may not meet regulatory standards and may be misleading. Investors should be cautious about following investment advice from newsletters, blogs, or social media unless the content has been approved by a registered firm. The suspension is in effect from May 16, 2022, through July 15, 2023.