FINRA

Without admitting or denying the findings, Rahman consented to the sanction and to the entry of findings that he facilitated a senior customer's designation of Rahman's wife as beneficiary on two accounts. The findings stated that the customer was not Rahman's family member and Rahman failed to provide written notice to his member firm of the customers designation of Rahman's wife as beneficiary. The findings also stated that Rahman falsified the customer's beneficiary forms by identifying his wife as the customer's niece. Rahman engaged in this conduct to prevent his firm from identifying the designation of his wife as a prohibited beneficiary designation. The findings also included that Rahman engaged in an undisclosed OBA by providing services to the customer, such as buying furniture, groceries, and clothing, driving him to appointments, and sending his mail to his relative. Rahman told the customer and the relative that he could not be compensated for these services directly because the customer was his customer, but instead directed them to write checks to Rahman's wife, which they did, totaling at least $116,000. Rahman did not provide prior written notice to or receive approval from his firm for his OBA. FINRA found that Rahman accepted gifts from the customer in circumvention of firm policy. In addition to the monetary compensation Rahman received from the customer through his wife, he also accepted monetary gifts from him via payments from the customer to vendors and credit card companies on Rahman's behalf. Rahman repeatedly told the customer about his outstanding bills and accepted the customer's payment of those bills totaling more than $47,000. Rahman failed to disclose these gifts to the firm and falsely stated on compliance questionnaires that he had not received unreported gifts.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

6/10/2024

L.M. KOHN & COMPANY

Discharged

Without admitting or denying the findings, Rahman consented to the sanction and to the entry of findings that he facilitated a senior customer's designation of Rahman's wife as beneficiary on two accounts while employed by Merrill Lynch, Pierce, Fenner & Smith. The findings stated that the customer was not Rahman's family member and Rahman failed to provide written notice to his member firm of the customers designation of Rahman's wife as beneficiary. The findings also stated that Rahman falsified the customer's beneficiary forms by identifying his wife as the customer's niece. Rahman engaged in this conduct to prevent his firm from identifying the designation of his wife as a prohibited beneficiary designation. The findings also included that Rahman engaged in an undisclosed OBA by providing services to the customer, such as buying furniture, groceries, and clothing, driving him to appointments, and sending his mail to his relative. Rahman told the customer and the relative that he could not be compensated for these services directly because the customer was his customer, but instead directed them to write checks to Rahman's wife, which they did, totaling at least $116,000. Rahman did not provide prior written notice to or receive approval from his firm for his OBA. FINRA found that Rahman accepted gifts from the customer in circumvention of firm policy. In addition to the monetary compensation Rahman received from the customer through his wife, he also accepted monetary gifts from him via payments from the customer to vendors and credit card companies on Rahman's behalf. Rahman repeatedly told the customer about his outstanding bills and accepted the customer's payment of those bills totaling more than $47,000. Rahman failed to disclose these gifts to the firm and falsely stated on compliance questionnaires that he had not received unreported gifts.

Merrill Lynch, Pierce, Fenner and Smith Incorporated

Discharged

Conduct including engaging in undisclosed outside business activitiy with a client, accessing a client account in violation of firm policy, failing to comply with firm policy concerning the appointment of a family member as a beneficiary on a client's accounts, and providing inaccurate information on firm records.