Tarek Mohsen Mohamed, of Clearwater, Florida, a stockbroker formerly registered with Bankers Life Securities Inc., has been charged by Financial Industry Regulatory Authority with failing to cooperate with a FINRA investigation concerning accusations of Mohamed’s involvement in an undisclosed outside business activity while registered with Bankers Life Securities. Department of Enforcement v. Tarek Mohsen Mohamed Disciplinary Proceeding No. 2020067814802 (December 29, 2021).
According to the Complaint, on September 2, 2020, a Form U5 (Uniform Termination Notice for Securities Industry Registration) was filed by Bankers Life which shows that it terminated Mohamed as a stockbroker. According to Bankers Life, Mohamed violated policies and conduct rules by failing to notify it about his outside business activity, including his solicitation of investments.
The Complaint also states that a grievance was filed by a customer of Mohamed. The customer alleged that their $46,000.00 in funds had been taken and deposited by Mohamed in Perfect Media Promotions. The customer’s funds were allegedly provided to Mohamed in the form of two checks that were written out to Perfect Media between December of 2019 and June of 2020. One of those checks signaled that the customer used the funds for investments.
FINRA was told by Bankers Life Securities that a second customer complaint was made about Mohamed from one of his customers. The complaint alleges that Mohamed’s financial product sales were not consistent with the customer’s best interests.
FINRA opened an investigation into Mohamed following receipt of Bankers Life Securities’ termination notice. Mohamed was asked by FINRA to provide documents and information concerning the allegations made by the securities broker dealer. He was asked to hand over tax returns, brokerage statements, and bank statements.
FINRA states that Mohamed emailed the regulator, admitting to depositing the customer’s $46,000.00. Mohamed relayed that he returned the customer’s funds, but he failed to show anything to FINRA other than a bank statement from Perfect Media showing a deposit and withdrawal.
A second request for Mohamed’s information was made by FINRA but to no avail; the certified and first-class mailings to Mohamed’s address had been returned. Mohamed purportedly emailed FINRA another response afterward, but he did not supply the requested documents. Mohamed was then warned about FINRA’s impending suspension of his stockbroker registration for failing to comply. Mohamed sent FINRA another partial response but still failed to meet FINRA’s requests.
FINRA states that Mohamed’s suspension went into effect. Mohamed then asked the regulator to lift the suspension without providing any of the brokerage or bank account statements or other outstanding documents. FINRA contends that Mohamed violated Rule 8210 by failing to cooperate in the investigation into his outside business activities.
FINRA Public Disclosure shows that Mohamed is referenced in a customer initiated investment related written complaint which was resolved for $75,982.00 on November 20, 2020, supported by accusations that the customer’s money was used by Mohamed for Perfect Media without the customer receiving any documents relating to the investments. According to the complaint, Mohamed converted the customer’s funds. The complaint additionally alleges misappropriation and theft while Mohamed was associated with Bankers Life Securities and Bankers Life Casualty Company.
Mohamed was registered with Bankers Life Securities between October 12, 2017, and September 2, 2020.
