The law offices of Gana Weinstein LLP are currently investigating claims that advisor Christopher Roumayeh (Roumayeh) has been accused by a financial regulator of engaging in undisclosed outside business activities (OBAs) and private securities transactions among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Roumayeh was employed by his prior employer Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) prior to being investigated concerning his activities. If you have been a victim of Roumayeh’s alleged misconduct our firm may be able to assist you in recovering funds.
In May 2020, Roumayeh was sanctioned by FINRA which found that he consented to sanctions and the findings that he engaged in outside business activities without providing prior written notice to his member firm. FINRA found that Roumayeh and a firm customer purchased a franchise involved in the professional video gaming industry. FINRA alleged that Roumayeh managed the franchise’s day-to-day operations, formed corporate entities related to the franchise’s operations, served as an officer and director for them, and solicited prospective investors in the franchise. Roumayeh further is alleged to have concealed his relationship with the entities by forming them in his wife’s name and named her as the sole authorized representative on an entity’s bank account.
In addition, FINRA also found that Roumayeh engaged in other OBAs such as forming and managing a separate limited liability company that he purchased commercial real estate through. Roumayeh then is alleged to have made false statements to the firm on annual compliance questionnaires concerning his outside business activities. Finally, FINRA also found that Roumayeh participated in a private securities transaction by soliciting and facilitated the investment of a publicly-traded company in the franchise. Roumayeh’s is alleged to have participated in identifying other potential investors, responding to questions from the company during its due diligence, and negotiating the terms and structure of the company’s investment. To facilitate the company’s $5.5 million investment, FINRA claims that Roumayeh formed a new holding company that he sold and issued shares of preferred stock to the company through.