March, 2025 | Based in New York, NY
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Essential Information About Ali Barry Mahlooji
- Full Name: Ali Barry Mahlooji
- CRD Number: 4830105
- Current Location: New York, NY
- Current Employer: PHX Financial, Inc.
- Office Address: 100 Wall Street, Floor 10, New York, NY 10005
- Registration Status: Currently registered with 1 Self-Regulatory Organization (FINRA) and licensed in 49 U.S. states and territories
- Experience: In the securities industry since 2005 (nearly 20 years)
- FINRA BrokerCheck: Five customer disputes – two pending, three resolved (two settled, one denied)
- Previous Employers: National Securities Corporation (2012-2019), Newbridge Securities Corporation (2010-2012), Empire Asset Management Company (2010), Brookstone Securities (2009-2010), J.P. Turner & Company (2009), National Securities Corporation (2006-2009), Aura Financial Services (2005-2006)
- Ability to Recover Losses: Potential FINRA arbitration eligibility for transactions within the past six years
A Concerning Pattern: The Investment Fraud Investigation of Ali Barry Mahlooji
Our securities fraud law firm is actively investigating allegations against financial advisor Ali Barry Mahlooji (CRD# 4830105), who currently works at PHX Financial, Inc. in New York. With a troubling history of customer complaints and two pending FINRA arbitration cases, Mahlooji’s conduct raises serious questions about his investment recommendations and adherence to industry standards.
Investors who have worked with Mahlooji should be aware of his record, which includes multiple allegations of unsuitable investment recommendations involving private equity offerings, OTC stocks, and real estate securities. These complaints have resulted in settlements totaling over $46,000, and current pending claims seek significant additional damages.
The ongoing investigation aims to determine whether Mahlooji violated securities regulations and industry standards, potentially causing substantial financial harm to his clients. If you’ve invested with Ali Barry Mahlooji and experienced unexpected losses, you may be entitled to compensation through FINRA arbitration.
Detailed Analysis of Allegations Against Ali Barry Mahlooji
FINRA BrokerCheck records reveal a pattern of customer complaints against Mahlooji throughout his career. Most troubling are the consistent allegations of unsuitable investment recommendations, particularly involving higher-risk securities:
Unsuitable Investment Recommendations
The most consistent thread across complaints against Mahlooji involves allegedly unsuitable investment recommendations:
- A pending FINRA arbitration (Case #24-01709) filed in August 2024 alleges that between November 2020 and December 2023, Mahlooji recommended unsuitable private equity investments. The claimant seeks unspecified compensatory damages.
- Another pending arbitration (Case #23-03430) filed in December 2023 alleges that from June 2014 through September 2022, Mahlooji was “negligent with unsuitable recommendations” in listed equity securities. The claimants seek $280,765.51 in damages.
- A settled complaint from August 2021 involved allegations that Mahlooji recommended unsuitable OTC equity securities. While the client initially sought $114,000, the matter was settled for $40,000 in July 2022.
- Another settled complaint from April 2021 alleged unsuitable recommendations of real estate securities. This was resolved with a $6,500 settlement in August 2021.
These repeated complaints across multiple firms and involving various security types suggest a concerning pattern rather than isolated incidents.
High-Risk Securities
A review of Mahlooji’s complaint history reveals a focus on higher-risk, less liquid investments:
- Private Equity: Current allegations involve private equity offerings, which are typically only suitable for sophisticated investors with high risk tolerance and substantial assets.
- OTC Stocks: Over-the-counter securities often involve smaller companies with less regulatory oversight, transparency, and liquidity than exchange-listed securities.
- Real Estate Securities: These can include REITs and other illiquid investments that may carry significant risk and hidden fees.
Red Flags for Investors: Identifying Potential Misconduct
If you’re currently or have previously been a client of Ali Barry Mahlooji, be alert for these warning signs of potential investment fraud or misconduct:
Unsuitable Investment Recommendations
- Investments that don’t align with your stated financial goals, time horizon, or risk tolerance
- Complex investment products that were difficult to understand or weren’t fully explained
- Concentration of your portfolio in high-risk securities despite a conservative investment profile
- Recommendations that seem inconsistent with your age, retirement timeline, or financial situation
Excessive Risk
- Being placed in private investments despite having a low or moderate risk tolerance
- Promises of unusually high returns with minimal risk
- Over-concentration in illiquid investments that can’t be easily sold if needed
- Recommendations of OTC stocks or other speculative investments without adequate disclosure of risks
Communication Issues
- Difficulty obtaining clear answers about investment performance or strategy
- Reluctance to provide documentation about investments
- Pressure to make quick decisions without adequate time to review information
- Receiving inconsistent or contradictory information about investments
Account Performance
- Significant losses while similar, more conventional investments performed well
- Performance that doesn’t match what was represented when you made the investment
- Unexplained fees or commissions that seem excessive
- Account statements that are confusing or lack transparency
Legal and Regulatory Framework: Broker Responsibilities
Financial advisors like Ali Barry Mahlooji operate under strict regulatory requirements designed to protect investors:
FINRA Rule 2111: Suitability
This cornerstone of investor protection requires brokers to have a reasonable basis to believe their recommendations are suitable for the customer based on the customer’s investment profile. This profile includes:
- Age
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Investment time horizon
- Liquidity needs
- Risk tolerance
The consistent allegations against Mahlooji suggest potential violations of this fundamental rule.
FINRA Rule 2010: Standards of Commercial Honor
Brokers must observe high standards of commercial honor and just and equitable principles of trade. Making unsuitable recommendations or failing to disclose material risks could violate this standard.
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
This rule prohibits brokers from employing any manipulative, deceptive, or fraudulent device to effect any transaction or induce the purchase or sale of any security.
Investment Advisers Act Fiduciary Duty
If functioning as an investment adviser, Mahlooji would be bound by a fiduciary duty to put clients’ interests first and fully disclose all material facts about recommended investments.
Steps for Affected Investors
If you’ve invested with Ali Barry Mahlooji and are concerned about potential misconduct, take these important steps:
1. Review Your Account Documentation
Gather all account statements, trade confirmations, correspondence, and notes from meetings or phone calls with Mahlooji. Look for investments that significantly underperformed or didn’t match your understanding of what you were purchasing.
2. Document Your Investment Objectives
Review your initial account opening documents and any investment policy statements. Note whether the investments recommended matched your stated objectives, risk tolerance, and time horizon.
3. Calculate Your Losses
Determine the extent of your actual losses, including both direct investment losses and excessive fees or commissions paid.
4. Act Promptly
Be aware that FINRA arbitration claims generally must be filed within six years of the event giving rise to the claim. Delaying action could jeopardize your right to recovery.
5. Consult with a Securities Attorney
An experienced securities fraud attorney can evaluate your case, determine if you have grounds for a claim, and guide you through the recovery process.
6. Consider FINRA Arbitration
If appropriate, your attorney can help you file a claim through FINRA’s arbitration system, the primary forum for resolving disputes between investors and brokers.
How Our Securities Fraud Attorneys Can Help You Recover Your Losses
Our law firm specializes in representing investors who have suffered losses due to broker misconduct. When handling investment fraud cases involving financial advisors like Ali Barry Mahlooji, we provide:
Comprehensive Case Evaluation
Our experienced attorneys will thoroughly review your account statements, correspondence, and other documentation to identify potential violations and calculate recoverable losses.
Expert Forensic Analysis
We work with financial experts to conduct a detailed forensic analysis of your accounts, identifying unsuitable investments, excessive risk, and other forms of misconduct.
Representation in FINRA Arbitration
Our skilled litigators will represent you throughout the FINRA arbitration process, from filing the initial claim to presenting your case before the arbitration panel.
Contingency Fee Structure
We handle investment fraud cases on a contingency fee basis, meaning you pay no legal fees unless we recover money for you. There’s no financial risk to seeking justice.
Recovery of Various Damages
We pursue recovery of actual investment losses, excessive fees and commissions, market-adjusted damages (what your portfolio should have earned), and potentially punitive damages in cases of egregious misconduct.
Your financial security is too important to leave at risk. If you’ve suffered losses while working with Ali Barry Mahlooji, you may be entitled to compensation. Take the first step toward recovery by calling 800-950-6553 today or submitting our secure online form. Our experienced investment fraud attorneys are standing by to provide a confidential, no-obligation consultation and help you determine the best path forward.
