February 5, 2021
General Securities Representative Raward Roy Alame recently consented to sanctions imposed by the Financial Industry Regulatory Authority (FINRA) for participating in private securities transactions involving his management of a customer’s securities account held at another firm, without providing notice to his member firm, Merrill, Lynch, Pierce, Fenner & Smith Inc. (Merrill Lynch).
Alame’s FINRA BrokerCheck report reveals that he was previously associated with NYLife Securities LLC in Downers Grove, Illinois from November 2007 to February 2008. He became associated with Merrill Lynch in Raleigh, North Carolina from March 2016 to June 2019 when he was discharged for allegedly “completing an account-related document, signed by client, in an effort to service the clients’ account and failing to be forthcoming with the Firm’s review of the matter.”
According to the Letter of Acceptance, Waiver and Consent (AWC), FINRA’s investigation began when Merrill Lynch disclosed a settlement totaling $114,545 based on a customer complaint that alleged selling away. Between February 2019 and July 2019, after recommending that this customer open a brokerage account at another FINRA member firm, Alame recommended and executed 36 transactions in options securities in this customer’s account. These recommendations included nearly $580,000 in options purchases, which the customer paid Alame $2,700 to execute. The transactions resulted in a loss of $107,195 for the customer.
FINRA Department of Enforcement asserts that Alame violated FINRA Rules 3280 and 2010 by failing to provide notice to or obtain approval from Merrill Lynch prior to executing these transactions outside of the firm. Without admitting or denying allegations made against him, Alame consented to a six-month suspension from associating with any FINRA member firm in any capacity, a $5,000 fine, and to disgorge $2,700 plus interest.
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