Imdadur Rahman (also known as Gino Rahman), of Troy, Michigan, a stockbroker registered with Merrill Lynch Pierce Fenner Smith Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Rahman engaged in unauthorized “financial transactions” with an elderly customer. Letter of Acceptance, Waiver, and Consent No. 2023080253301 (June 10, 2024).
FINRA found that Rahman facilitated a senior customer’s designation of Rahman’s wife as a beneficiary on two customer accounts without providing written notice to his firm. Rahman reportedly falsified the beneficiary forms by identifying his wife as the customer’s family member to prevent the firm from detecting it. He violated FINRA Rules 3241 and 2010.
In addition, Rahman engaged in undisclosed outside business activities. He provided services to the customer, such as managing his mail and driving him to appointments. Rahman directed the customer and his relative to compensate his wife for $116,000.00 in services. He did not notify or receive approval from the securities broker dealer for these activities, violating FINRA Rules 2010 and 3270.
Rahman also accepted over $47,000.00 in monetary gifts from the customer, in violation of Merrill Lynch’s policies. He accepted payments from the customer to cover outstanding bills, without disclosing these gifts to his firm. Rahman falsely represented on compliance questionnaires that he had not obtained any unreported gifts, violating FINRA Rule 2010.
On October 9, 2023, Merrill Lynch discharged Rahman based upon allegations that Rahman provided false information on records, failed to comply with company policy concerning beneficiaries on customer accounts, accessed a customer account without authorization, and engaged in undisclosed outside business activities.
Rahman was associated with L.M. Kohn Company in Troy, Michigan from October 30, 2023, to June 10, 2024.
