FINRA Bars Fromer Merrill Lynch Advisor Over Relationship with Elderly Client

Posted on November 13th, 2024 at 10:23 AM
FINRA Bars Fromer Merrill Lynch Advisor Over Relationship with Elderly Client

From the desk of Jim Eccleston at Eccleston  Law

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 client.

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 for two Merrill accounts. To bypass Merrill's prohibition against advisors or their family members serving as beneficiaries, Rahman falsely identified his wife as the customer's niece.

In addition to this violation, Rahman 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.

As reported by AdvisorHub, from August 2022 to July 2023, Rahman accepted monetary gifts totaling more than $47,000 from the customer to pay his outstanding bills. He failed to disclose these 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.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

February 10, 2025
Former Merrill Lynch Advisor Sanctioned by FINRA for Unauthorized Trades

FINRA has fined Anthony J. Seifert, a former Merrill Lynch advisor based in Mount Pleasant, South Carolina, $5,000 and suspended him for 20 days.

February 7, 2025
Court Finds American Airlines Breached Fiduciary Duty in 401(k) ESG Case

A federal court ruling against American Airlines has brought attention to the role of environmental, social, and governance (ESG) factors in managing retirement plans.

February 7, 2025
SEC Charges LPL Financial with Anti-Money Laundering Failures

The Securities and Exchange Commission (SEC) has charged LPL Financial LLC, a broker-dealer and investment adviser, with multiple violations of anti-money laundering (AML) regulations.