Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Tarek Mohamed (Mohamed), previously associated with Bankers Life Securities, INC., has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Mohamed recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on December 29, 2021.
Mohamed was named a respondent in a FINRA complaint alleging that he failed to provide information and documents requested by FINRA during its investigation into the circumstances of his termination from his member firm. The complaint alleges that the firm filed a Form U5 disclosing that it terminated Mohamed for violating standard of conduct rules and firm policies related to his failure to disclose, and solicitation of investments in, an outside business activity. The Form U5 also disclosed a complaint filed on behalf of Mohamed\\u2019s client, alleging that he took $46,000 in client funds and deposited them into an account in the name of Mohamed\\u2019s company. The funds were delivered by the client in the form of two personal checks written to the company. Later the firm filed an amendment to the Form U5 disclosing that a second complaint was filed on behalf of Mohamed\\u2019s same client, alleging that he did not act in the client\\u2019s best interest when he sold financial products to the client. Later, the firm disclosed that it had settled the complaints by refunding $46,000 to the client and granting other relief. In response to FINRA\\u2019s request, Mohamed provided FINRA with a partial response from his email account. In a written statement, Mohamed admitted that he deposited $46,000 in client funds into his business account but asserted that he returned the funds in cash to the 78-year-old client (less a commission) to help the client. Mohamed provided a single company bank statement that showed the first deposit of $31,000 and a subsequent $29,000 cash withdrawal. However, Mohamed did not provide any other information or bank statements for any personal or business bank accounts, brokerage statements, or any business or personal tax returns that had been requested by FINRA. Mohamed later emailed another partial response. Specifically, Mohamed provided a narrative response to some questions posed by FINRA but that response was incomplete because Mohamed still did not provide any other information or bank statements for any personal or business bank accounts, brokerage statements, or any business or personal tax returns. Mohamed emailed a third partial response providing responsive company bank statements. One company statement showed deposit of the client\\u2019s $15,000 check without a corresponding large cash withdrawal. Subsequently, FINRA sent Mohamed a notice informing him that he was suspended from associating with any FINRA member and warning him that he would be automatically barred if he did not request termination of the suspension on grounds of full compliance. To date, Mohamed has not fully complied with FINRA\\u2019s requests and as a result he is currently suspended from associating in any capacity with any FINRA member. \, \,