Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation
From the desk of Jim Eccleston at Eccleston Law
The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentations to clients.
According to the complaint filed by FINRA’s enforcement department, Chehab, who was registered with Merrill from July 2023 to August 2024, declined to provide requested documents. As reported by ThinkAdvisor, in an email to FINRA staff, he stated, “I am not going to provide that information and I do not care if I get barred.”
Merrill reported to FINRA that Chehab was discharged in July 2024 for failing to adhere to firm standards, including making an impermissible recommendation to a self-directed client, using personal email for firm business, and “selling away,” or offering unapproved securities. The firm later disclosed an internal review into Chehab’s conduct involving unauthorized trading in client accounts.
FINRA’s complaint notes that Chehab’s BrokerCheck record reflects two customer settlements from the summer of 2024. One client alleged that Chehab used their login credentials to trade in a self-directed account between May and August 2024, settling for over $319,400. Another client made the same allegation for the same time frame, resulting in a settlement of nearly $42,800.
The complaint asserts that Chehab’s refusal to provide information “impeded FINRA’s investigation into his potential misconduct” by depriving the regulator of material evidence.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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