FINRA Bars Former Merrill Lynch Advisor
From the desk of Jim Eccleston at 蘑菇传媒
The Financial Industry Regulatory Authority (FINRA) has barred Imdadur “Gino” Rahman, a former Merrill Lynch advisor for multiple compliance violations involving his relationship with an elderly customer.
AdvisorHub reports that FINRA's investigation revealed that from December 2021 to August 2022, Rahman facilitated the nearly 80-year-old customer’s designation of Rahman’s wife as the beneficiary of two Merrill accounts. To bypass Merrill's prohibition against an advisor or his or her family member serving as a beneficiary, Rahman falsely identified his wife as the customer's niece.
According to the Acceptance, Waiver, and Consent (“AWC”), Rahman also engaged in unapproved outside business activities from December 2021 to July 2023. He received $116,000 for services provided to the customer, such as buying furniture, and groceries, and driving the customer to appointments. Rahman instructed the customer to write checks to his wife, as he could not receive payments directly.
Furthermore, from August 2022 to July 2023, Rahman accepted monetary gifts totaling more than $47,000 from the customer to pay his own outstanding bills. He failed to disclose those gifts to Merrill and falsely stated on compliance questionnaires that he had not received unreported gifts.
Rahman's actions violated FINRA Rule 2010, which mandates brokers to act with "high standards." Although the customer did not file a complaint, and Rahman’s BrokerCheck record shows no disputes, FINRA’s investigation stemmed from Merrill’s U5 filing. Rahman accepted the bar without admitting or denying the findings. Merrill terminated him in October 2023 over similar allegations and he subsequently registered with L.M. Kohn & Company in Michigan.
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Tags: eccleston, eccleston law, finra
