March, 2025 | Based in Los Angeles, CA
If you’ve suffered financial losses while working with Randy Farzin Moshtael, don’t hesitate to take action. Call 800-950-6553 or complete our online form today to schedule your free, no-obligation case evaluation with our experienced securities attorneys.
Important Details About Randy Farzin Moshtael
- Full Name: Randy Farzin Moshtael
- CRD Number: 1036474
- Current Location: Los Angeles, California
- Current Employer: Oppenheimer & Co. Inc. (Since 06/06/2003)
- Office Address: 10880 Wilshire Boulevard, 23rd Floor, Los Angeles, CA 90024
- Registration Status: Currently registered with 9 Self-Regulatory Organizations and 10 U.S. states and territories
- Disclosure Events: Customer Disputes (2), Employment Termination (1)
- Industry Experience: In the securities industry since 1982 (over 42 years)
- Most Recent Arbitration: FINRA Case #24-02203 (October 2024), alleging failure to maintain account according to client instructions and excessive commission charges in commodity trading
Detailed Case Overview
Randy Farzin Moshtael, a broker with Oppenheimer & Co. Inc. in Los Angeles, has been the subject of multiple customer complaints and a termination from a previous employer. His FINRA BrokerCheck report reveals a pattern of alleged misconduct that raises serious concerns about his handling of client accounts, particularly in the areas of futures commodity trading and commission practices.
Most recently, in October 2024, a client filed a FINRA arbitration claim (Case #24-02203) alleging that Moshtael failed to maintain the client’s account according to specific instructions not to let the value fall below $250,000 and charged excessive commissions. The complaint involves commodity options and futures trading between August 2020 and February 2022. The client initially sought $400,000 in damages. This case was settled in January 2025 for $140,000, with Moshtael personally contributing $63,000 toward the settlement.
In his statement regarding this settlement, Moshtael claimed that the client had previously requested a 30% discount on commissions generated in commodity trading from 2020 to 2023, which was agreed to but never implemented. When the customer complaint was received, Moshtael states that the firm offered an adjustment, which the client rejected. Moshtael also asserts there was never any discussion about the use of stop losses. According to his statement, the firm and client eventually settled for the “original agreed-upon commission adjustment, plus a small amount for legal fees.”
This recent case follows a similar pattern to a previous customer complaint filed in 2015. In that case (FINRA Case #15-01520), a client alleged Moshtael made excessive, unauthorized, and unsuitable futures trades in their account. The client sought $470,000 in damages, and the matter was settled in July 2016 for $97,500. Notably, in this earlier case, Moshtael did not personally contribute to the settlement, and his statement indicates the case “WAS SETTLED AS A BUSINESS DECISION AND TO AVOID THE COST OF LITIGATION.”
Prior to these customer disputes, Moshtael was permitted to resign from Smith Barney in September 2002 after allegations of “GIVING MONEY TO A CLIENT.” In his explanation of this termination, Moshtael stated that he wrote a check to a client who happened to be a friend of over 20 years. He claimed that when he wrote the check, he had “COMPLETELY FORGOTTEN HE WAS A CLIENT” since he had written checks to this individual in 1997 and 1998 as well, before the person became a client in late 1999.
Historical and Background Information
Randy Farzin Moshtael has been in the securities industry since August 1982, when he began his career with E.F. Hutton & Company Inc. Over his four-decade career, he has worked at several major financial firms, including:
- Oppenheimer & Co. Inc. (06/2003 – Present)
- Morgan Stanley DW Inc. (05/2003 – 06/2003)
- Morgan Stanley (05/2003 – 06/2003)
- Salomon Smith Barney Inc. (07/1993 – 09/2002)
- Lehman Brothers Inc. (02/1988 – 07/1993)
- Shearson Pacific (06/1987 – 03/1988)
- F. Hutton & Company Inc. (08/1982 – 06/1987)
Moshtael holds multiple securities licenses, demonstrating a broad range of qualifications:
- Securities Industry Essentials (SIE) Examination (10/01/2018)
- National Commodity Futures Examination (Series 3) (09/10/1985)
- General Securities Representative Examination (Series 7) (01/15/1983)
- Investment Company Products/Variable Contracts Representative Examination (Series 6) (10/26/1982)
- Direct Participation Programs Representative Examination (Series 22) (08/30/1982)
- Uniform Securities Agent State Law Examination (Series 63) (09/08/1982)
He is currently registered with 9 Self-Regulatory Organizations, including FINRA, various stock exchanges, and licensed in 10 U.S. states and territories. While his longevity in the industry and extensive licensing may suggest professional stability, the disclosure events on his record raise red flags about his practices, particularly in commodity futures trading.
The pattern of allegations suggests potential issues with account management, particularly concerning commodities trading, which is inherently risky and requires specialized knowledge. The significant settlements in both customer disputes indicate that either Moshtael or his employing firms found merit in the complaints or determined that fighting the allegations would be costlier or more damaging than settling.
Red Flags & Warning Signs
Moshtael’s FINRA BrokerCheck report reveals several concerning patterns that investors should be aware of:
1. Multiple Customer Disputes Involving Commodities Trading
Both disclosed customer disputes involve futures commodity trading, with similar allegations of excessive trading and unsuitable recommendations. Commodities futures are complex, high-risk investments that are not appropriate for all investors. The recurrence of similar complaints suggests a potential pattern rather than isolated incidents.
2. Substantial Financial Settlements
The settlements in both customer disputes were significant:
- $140,000 in the 2024-2025 case (with Moshtael personally contributing $63,000)
- $97,500 in the 2015-2016 case
These substantial sums suggest that either the claims had merit or that the potential liability was considered significant enough to warrant settlement rather than litigation.
3. Employment Separation Following Ethical Concerns
Moshtael was permitted to resign from Smith Barney in 2002 after allegations of giving money to a client. While Moshtael explained this as an innocent mistake involving a long-time friend who had later become a client, this type of financial relationship between brokers and clients is typically prohibited by firms and regulatory bodies as it can create conflicts of interest and potentially lead to improper influence or favoritism.
4. Personal Contribution to Recent Settlement
Moshtael personally contributed $63,000 to the most recent settlement. When brokers personally contribute to settlements, it sometimes indicates that the firm believes the broker bears significant responsibility for the conduct in question, rather than the issue being solely a firm policy or supervisory matter.
5. Allegations of Excessive Commissions
The most recent customer dispute specifically alleged excessive commission charges in commodity trading. Commission-based compensation structures can create inherent conflicts of interest, potentially incentivizing brokers to recommend frequent trading or particular products that generate higher commissions rather than those best suited to clients’ needs.
Legal & Regulatory Framework
Financial advisors like Randy Moshtael are subject to numerous regulations designed to protect investors:
FINRA Rule 2111: Suitability
This rule requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile. The allegations of unsuitable futures trades in the 2015 case potentially implicate this rule.
FINRA Rule 2010: Standards of Commercial Honor
This fundamental rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Practices such as excessive trading or charging inappropriate commissions could violate this standard.
FINRA Rule 3240: Borrowing From or Lending to Customers
This rule generally prohibits registered persons from borrowing money from or lending money to customers. While the specifics of Moshtael’s 2002 termination for “giving money to a client” are not fully detailed, such actions typically raise regulatory concerns.
FINRA Rule 3260: Discretionary Accounts
This rule establishes requirements for discretionary authority in customer accounts. If a broker is making trading decisions without proper authorization, this could constitute unauthorized trading, which was alleged in the 2015 customer dispute.
Commodity Futures Trading Commission (CFTC) Regulations
Given Moshtael’s involvement with futures trading, he would also be subject to CFTC regulations governing commodity futures trading. These include rules related to risk disclosure, suitability, and trading practices.
Guidance for Affected Investors
If you’ve been a client of Randy Farzin Moshtael and believe you may have been affected by improper practices, consider taking the following steps:
1. Review Your Account Statements
Carefully examine your investment statements, particularly focusing on:
- Trading frequency and patterns
- Commission charges
- Performance compared to relevant benchmarks
- Concentration in high-risk investments like commodity futures
- Unauthorized or unexpected transactions
2. Assess Your Investment Objectives vs. Actual Investments
Compare the investments and trading in your account with your stated investment objectives, risk tolerance, and financial situation. If there’s a significant mismatch, this could indicate unsuitable recommendations.
3. Document Everything
Maintain comprehensive records of:
- All written communications with your broker
- Notes from phone conversations or meetings
- Account agreements and disclosure documents
- Account statements and trade confirmations
- Any promises or representations made about investment performance or risk
4. Calculate Potential Damages
If you believe you’ve suffered losses due to misconduct, consider:
- Direct investment losses
- Excessive fees or commissions paid
- Opportunity costs (what your investments might have earned in suitable investments)
- Tax consequences of excessive trading
5. Understand Time Limitations
Be aware that FINRA arbitration claims typically must be filed within six years of the event giving rise to the claim. Don’t delay in seeking legal advice if you suspect misconduct.
How Our Securities Fraud Attorneys Can Help
Our law firm specializes in representing investors who have suffered losses due to broker misconduct. If you were a client of Randy Farzin Moshtael and have concerns about your investments, our experienced attorneys can assist you in several ways:
Expert Case Evaluation
We offer a thorough analysis of your investment situation, including:
- Detailed review of account statements and trading history
- Analysis of commission structures and potential excessive charges
- Assessment of the suitability of recommended investments
- Evaluation of potential unauthorized trading
- Calculation of damages
FINRA Arbitration Representation
Most investment disputes are resolved through FINRA arbitration rather than traditional courts. Our attorneys are experienced in this specialized forum and will:
- Prepare and file your Statement of Claim
- Gather and present compelling evidence
- Represent you throughout the arbitration process
- Develop effective legal strategies tailored to your specific case
- Present your case persuasively before arbitrators
Investigation of Firm Liability
In addition to the broker’s responsibility, we investigate whether the firm properly supervised the broker’s activities:
- Did the firm have adequate supervisory procedures in place?
- Were there red flags that should have prompted closer supervision?
- Did the firm fail to implement promised commission structures?
- Was there a pattern of similar misconduct that the firm should have detected?
Contingency Fee Structure
We understand that you’ve already suffered financial losses, which is why we typically work on a contingency fee basis. This means:
- No upfront costs
- Our fee is a percentage of what we recover for you
- If we don’t recover anything, you don’t owe us attorney’s fees
- Aligned interests – we succeed only when you do
Personalized Client Service
We provide individualized attention to each client:
- Regular updates on your case status
- Clear explanations of complex legal and regulatory issues
- Prompt responses to your questions and concerns
- Compassionate understanding of the emotional impact of investment losses
Commodity Futures Trading: High-Risk Investment Practices
Given the focus of the complaints against Moshtael on commodity futures trading, it’s important to understand the risks associated with these investments:
What Are Commodity Futures?
Commodity futures are contracts to buy or sell a specific quantity of a commodity at a specified price on a future date. These investments are inherently risky due to their leverage, volatility, and complexity.
Why Commodity Futures Require Special Scrutiny:
- Leverage: Futures typically require only a small percentage of the contract value as margin, creating significant leverage. While this can amplify gains, it also magnifies losses, potentially exceeding your initial investment.
- Market Volatility: Commodity prices can fluctuate dramatically due to various factors including weather, geopolitical events, supply chain disruptions, and economic conditions.
- Complexity: Understanding futures pricing, contract specifications, margin requirements, and trading strategies requires specialized knowledge that many retail investors lack.
- Commission Structure: Futures are often traded with per-contract commissions, which can incentivize excessive trading that benefits the broker rather than the client.
- Suitability Concerns: Due to their risk profile, commodity futures are generally suitable only for investors with high risk tolerance, substantial financial resources, and sophisticated market understanding.
Warning Signs of Potential Misconduct in Futures Trading:
- Frequent trading with high commissions
- Lack of clear explanation about the risks involved
- Recommendations disproportionate to your risk tolerance
- Unrealistic promises about potential returns
- Failure to implement promised commission discounts
- Unauthorized trading or margin calls
- Account value fluctuations inconsistent with market movements
Our attorneys have specific experience with commodity futures-related claims and understand the unique regulatory framework and trading practices in this specialized area.
If you’ve experienced investment losses while working with Randy Farzin Moshtael, particularly involving commodity futures trading or commission practices, don’t hesitate to seek professional guidance. Your financial security deserves protection, and responsible brokers should be held accountable for misconduct. Call 800-950-6553 or complete our online form to schedule your confidential, no-obligation consultation with our experienced securities attorneys.
