Rawad Roy Alame (also known as Roy Rawad Alame) of Raleigh North Carolina a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith Incorporated has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings of Alame selling away when he was registered with Merrill Lynch. Letter of Acceptance Waiver and Consent No. 2020065443201 (Dec. 21, 2020).
According to the AWC, FINRA received word from Merrill Lynch on June 28, 2019 that Alame had been discharged from employment supported by accusations of Alame having completed an account document that a customer already signed. Merrill Lynch alleged that Alame failed to be forthcoming when his actions were under internal review. FINRA was also made aware from the securities broker dealer that a customer had filed an investment related complaint alleging wrongdoing by the stockbroker.
The AWC stated that a customer was advised by Alame to establish an outside investment account in 2019 where Alame would recommend and place as many as 36 options transactions in that outside account. A total of $578,246.00 in options purchases had been executed according to Alame’s advice. This produced $107,195.00 in realized losses in that account even though Alame received compensation from the customer for his transactions.
FINRA stated that Merrill Lynch was not apprised about this outside investment account in which Alame recommended options transactions. The stockbroker was also provided a compliance questionnaire in April of 2019. That questionnaire called upon him to identify if he had been compensated for any business that did not occur through Merrill Lynch. He was also prompted in the questionnaire to disclose if he was involved in any accounts that had not been approved by Merrill Lynch for the stockbroker’s involvement. The regulator stated that the questionnaire had been falsely certified by Alame.
FINRA determined Alame’s activities to violate of FINRA Rules 2010 and 3280.
FINRA Public Disclosure confirms that Alame is referenced in a customer initiated investment related written complaint which was resolved for $114,545.96 on January 30, 2020 founded on allegations of private securities transactions being initiated by the stockbroker causing the Merrill Lynch customer to incur options losses.
Alame was registered with Merrill Lynch between March 29, 2016 and June 14, 2019.
