Amr Mostafa Aboulmagd, of Horsham, Pennsylvania, a registered representative for NYLife Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he obstructed a FINRA investigation into allegations that he made unsuitable recommendations and misrepresentations to customers. Letter of Acceptance, Waiver and Consent, No. 2015044401301 (Oct. 3, 2016).
According to the AWC, Aboulmagd was terminated from NYLife Securities LLC on April 14, 2015, amid allegations stemming from an internal review suggested that Aboulmagd made recommendations to investors which were unsuitable, and that Aboulmagd failed to disclose to his firm certain information regarding customer annuity replacements.
FINRA ultimately investigated the circumstances regarding Aboulmagd’s departure from NYLife Securities LLC, focusing on whether Aboulmagd made such unsuitable recommendations to customers that switched from fixed to variable annuities, as well as made misrepresentations in this regard. The AWC stated that Aboulmagd was sent a request by FINRA on March 29, 2016, per FINRA’s Rule 8210, in which Aboulmagd was asked to provide recorded testimony before FINRA in connection with the investigation.
The AWC stated that Aboulmagd eventually responded to FINRA on April 20, 2016, in which he acknowledged FINRA’s request for him to provide such testimony, but stated that he would not be providing such at any point. FINRA found that Aboulmagd’s failure to cooperate in this regard was violative of FINRA Rules 2010 and 8210, leading to his permanent bar.
FINRA Public Disclosure reveals that Aboulmagd has been subject to five disclosure incidents, three of which involve customer disputes. Particularly, on January 7, 2015, Aboulmagd became subject to a customer dispute in which the customer alleged that signatures on the customer’s account documents were not authentic, and that such signature was not provided on any fixed annuity documentation with her approval.
On June 3, 2015, Aboulmagd settled a customer dispute for $12,862.12 amid allegations that Aboulmagd misrepresented the features and risks associated with a fixed annuity, as well as penalty fees associated with surrendering the annuity policy. On July 1, 2015, Aboulmagd settled a customer dispute for $8,799.33 after the customer claimed to be misled by Aboulmagd with regard to a variable universal life insurance policy which the customer purchased.
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