Former West Palm Beach Broker Suspended for Taking Undisclosed Loan from Customer
Omar Waleed Hammad-Randolph (CRD #6087721) is a previously registered securities broker and financial advisor. From August of 2012 until October of 2014, Mr. Hammad-Randolph was a representative for Morgan Stanley in West Palm Beach, FL. Subsequently, he served as a registered broker for Merrill Lynch in Boca Raton, FL.
On August 6th, 2020, the Financial Industry Regulatory Authority (FINRA) issued a fine against Mr. Hammad-Randolph of $10,000 and suspended him for five months for engaging in improper outside business activities, including taking an undisclosed loan from a customer. Below, our Florida investment fraud lawyers provide an overview of the allegations raised against the financial advisor.
Allegations: Violation of FINRA Rule 3240 and FINRA Rule 3270
In its investigation into the professional conduct of Florida financial advisor Omar Waleed Hammad-Randolph, FINRA found two separate violations of industry rules. The broker allegedly violated FINRA Rule 3240 and FINRA Rule 3270. Here is what the FINRA investigators determined:
- FINRA Rule 3240: Under FINRA Rule 3240, registered securities professionals must follow strict rules when borrowing from (or lending to) their customers. Among other things, a broker must get express permission from their member firm. Failure to do so is a direct violation of industry rules. In this case, Mr. Hammad-Randolph borrowed $150,000 from a Merrill Lynch customer without disclosing the loan to his member firm. Additionally, on internal compliance forms, he denied taking any such loan.
- FINRA Rule 3270: FINRA Rule 3270 regulates the outside business activities (OBAs) of broker and registered representatives. Once again, the rule includes strict disclosure requirements. Brokers must report outside business activities and obtain permission from their member firm before engaging in such transactions. When a broker-dealer allows a broker to engage in OBAs, the firm will then become responsible for overseeing the activities. In this case, FINRA alleges that the South Florida broker failed to comply with the requirements set forth by securities industry regulations.
Broker Sanctions: Fine and Suspension
At the time of the disciplinary proceedings, Florida broker Omar Waleed Hammad-Randolph was not actively registered with a licensed brokerage firm. Indeed, in September of 2018, he voluntarily resigned from Merrill Lynch following an inquiry into the undisclosed loan at issue in this case. Nonetheless, FINRA took enforcement action against the financial advisor. Without admitting or denying the allegations of wrongdoing, Mr. Hammad-Randolph consented to the sanctions, including:
- A $10,000 fine; and
- A five month suspension from the industry, running January 16th, 2021.
Call Our South Florida FINRA Lawyers for Professional Help With Your Case
At Carlson & Associates, P.A., our Miami investment fraud attorneys are results-driven advocates for investors and their family members. We know how to help clients navigate the claims process, including arbitration and litigation. If you suffered significant financial damage because your broker took an improper, undisclosed loan, our attorneys are available to help. Call us now for a fully confidential case evaluation. We represent investors in South Florida and beyond.
Resource:
brokercheck.finra.org/individual/summary/6087721
