Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Moghis Mohammad (Mohammad), previously associated with Ameriprise Financial Services, Inc., has at least one disclosable event. These events include one regulatory event, alleging that Mohammad recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on August 21, 2024.
S-19-2806-24-CO03 \\u2013 Moghis Uddin Mohammad \\u2013 Consent Order\, On August 21, 2024, the Securities Division entered into a Consent Order with Moghis Uddin Mohammad (CRD # 4912020) (\\u201cUddin\\u201d). This Consent Order resolves a previous Statement of Charges alleging violations of the Securities Act of Washington that involved breaching a fiduciary duty to clients; engaging in acts, practices, or courses of business which operate as a fraud or deceit; and making untrue or misleading statements or omissions when trading clients\\u2019 assets.\, Uddin helped manage the assets of a mostly-Washington state-based clientele concentrated in King and Snohomish counties. His clients ranged from early career investors to those in or near retirement. He helped cause millions of dollars in client losses through risky, high frequency trading strategies and holding client assets in leveraged ETFs for extended periods of time. Uddin did so regardless of their clients\\u2019 risk profiles, and used this strategy across client assets without disclosing the risks to their clients and while telling clients that their individual investment strategies were tailored to their specific needs. As clients began to complain about the losses in their accounts, the Respondent blamed political or macroeconomic events for these losses despite the fact that losses were at a multiple to that the market experienced as a whole. \, In the Consent Order, Uddin neither admitted nor denied the Securities Division\\u2019s Findings of Fact and Conclusions of Law. Uddin agreed to cease and desist from violations of the Securities Act of Washington and pay a fine, which has been suspended pending bankruptcy proceedings. The Consent Order also mandates that any investment adviser representative, broker-dealer, or securities salesperson registration that the Respondent May seek in the future should be denied. Uddin waived his right to request a hearing and to judicial review of this matter.\, \,
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Mohammad has been in the securities industry for more than 6 years. Mohammad has been registered as a Broker with Ameriprise Financial Services, Inc. since 2005.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
