Abdul Matin Rahmani – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Abdul Matin Rahmani.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Abdul Matin Rahmani. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Abdul Rahmani
Abdul Matin Rahmani is an Investment Adviser. Abdul Matin Rahmani’s Central Registration Depository (CRD) number is 4269583 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/4269583.
Click here to download a Detailed Audit Report for Abdul Matin Rahmani.
Abdul Matin Rahmani has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Abdul Matin Rahmani’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 4/15/2021
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2019063626703
- DocketNumberAAO: 2019063626703
- Initiated By: FINRA
- Allegations: Rahmani was named a respondent in a FINRA complaint alleging that he engaged in outside business activities (OBAs) through and on behalf of an entity without providing prior written notice to his member firm, Joseph Stone Capital L.L.C. The complaint alleges that the entity, which also operated under another name, advertised its business as marketing and selling shares of pre-initial public offering (IPO) companies to investors. Among other things, Rahmani solicited and met with prospective clients of the entity, which operated from the same office where he conducted his securities business. The complaint also alleges that Rahmani provided false or misleading information to FINRA in response to a written request for information in connection with its investigation of his undisclosed OBAs. Although FINRA requested that Rahmani identify all email addresses he used, as well as all bank accounts he controlled, he failed to disclose an email address that he used with a domain name from the entity’s other name. Rahmani also failed to disclose the existence of bank accounts that he opened at approximately the same time the entity was formed. The complaint further alleges that Rahmani provided false or misleading information to FINRA during on-the-record testimony. Rahmani falsely testified that he had no involvement with the entity, that he never used an email address associated with the entity, despite the fact that he had already produced to FINRA emails sent to and from his email account with the domain name from the entity’s other name, and that he had closed multiple bank accounts that he initially failed to disclose to FINRA. In addition, the complaint alleges that Rahmani failed to provide information and documents requested by FINRA. Following Rahmani’s on-the-record testimony, FINRA continued its investigation and requested information and documents pertaining to the bank accounts that he previously opened. Rahmani failed to provide FINRA with all the requested information or documents for half of the accounts and failed to provide any information or documents whatsoever related to the remaining accounts.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Duration: Indefinite
- Start Date: 11/2/2021
- Regulator Statement: Without admitting or denying the allegations, Rahmani consented to the sanction and to the entry of findings that he engaged in outside business activities (OBAs) through and on behalf of an entity that advertised its business as marketing and selling shares of pre-initial public offering (IPO) companies to investors without providing prior written notice to his member firm. The findings stated that Rahmani acted as an employee or independent contractor for the entity by soliciting prospective investors, meeting with at least one prospective investor, using an entity email account and using a debit card to withdraw funds from a bank account associated with the entity. In addition, Rahmani told the firm that he was not involved in the entity. The findings also stated that Rahmani provided incomplete information to FINRA in written responses by failing to cooperate with its investigation of his undisclosed OBAs. Although FINRA requested that Rahmani identify all email addresses he used, as well as all bank accounts he controlled, Rahmani failed to disclose an email address that he used with an entity domain name. Rahmani also failed to disclose the existence of four bank accounts that he opened at approximately the same time the entity was formed. The findings also included that Rahmani provided false or misleading information to FINRA during on-the-record testimony. Rahmani testified that he had no involvement with the entity, that he never used an email address associated with the entity, despite the fact that he had already produced to FINRA emails sent to and from his email account with an entity domain name, and that he had closed multiple bank accounts that he initially failed to disclose to FINRA. FINRA found that Rahmani failed to provide information and documents requested by FINRA. Following Rahmani\u2019s on-the-record testimony, FINRA continued its investigation and requested information and documents pertaining to the bank accounts that Rahmani opened. Rahmani failed to provide FINRA with all the requested information or documents for two of the four accounts and failed to provide any information or documents whatsoever related to the remaining two accounts.
DISCLOSURE 2 –
- Event Date: 8/5/2020
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: FINRA
- Description of Investigation: FINRA Case #20190636267: On August 5, 2020, FINRA made a preliminary determination to recommend that disciplinary action be brought against Rahmani alleging violations of FINRA Rules 3270 and 2010 in that Rahmani engaged in outside business activities without providing prior written notice to his member firm; Violation of FINRA Rules 8210 and 2010 in that Rahmani provided false or misleading information to FINRA in response to a request for documents and information pursuant to FINRA Rule 8210; Violation of FINRA Rules 8210 and 2010 in that Rahmani provided false or misleading information to FINRA during on-the-record testimony that was requested pursuant to FINRA Rule 8210; Violation of FINRA Rules 8210 and 2010 in that Rahmani failed to provide documents and information requested by FINRA pursuant to FINRA Rule 8210; and Violation of FINRA Rules 8210 and 2010 in that Rahmani failed to provide documents and information requested by FINRA pursuant to FINRA Rule 8210.
DISCLOSURE 3 –
- Event Date: 8/15/2019
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $67,065.29
- Judgment/Lien Type: Tax
- Broker Comment: THE INDIVIDUAL HAS STATED THAT THIS LIEN WAS A RESULT OF A SEVEN (7) YEAR AUDIT WITH THE INTERNAL REVENUE SERVICE (\IRS\)WHICH CURRENTLY IS BEING PAID MONTHLY.
DISCLOSURE 4 –
- Event Date: 12/15/2017
- Disclosure Type: Employment Separation After Allegations
- Disclosure Resolution:
- Disclosure Detail :: Firm Name: SW Financial
- Termination Type: Discharged
- Allegations: Mr. Rahmani hired a sales assistant and opened a branch office with another RR under the name of his outside business without the permission of the firm in violation of FINRA Rule 3270. Prior to him leaving the firm, Mr. Rahmani had the sales assistant send pre-filled new account and account transfer forms of the clients that the other RR serviced. In an attempt to have the accounts follow the other RR to a new broker dealer, the form were sent from an email address of the outside business. These forms contained client names addresses, social security numbers and investment financial information in violation of the firm’s customer privacy policy and Reg. S-P. Mr. Rahmani also forwarded an email containing a SW Financial new account form and check draft authorization that a client had previously filled out to an un-authorized email account after his termination in violation of the firms privacy policy and Reg. S-P.
- Broker Comment: According to the Form U5 filed by the firm, the internal review is ongoing.
DISCLOSURE 5 –
- Event Date: 4/30/2013
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $8,055.00
- Judgment/Lien Type: Civil
DISCLOSURE 6 –
- Event Date: 4/23/2013
- Disclosure Type: Employment Separation After Allegations
- Disclosure Resolution:
- Disclosure Detail :: Firm Name: MML INVESTORS SERVICES, LLC
- Termination Type: Discharged
- Allegations: TERMINATED IN CONNECTION WITH CONDUCTING AN UNAPPROVED OUTSIDE BUSINESS ACTIVITY WHILE ON SPECIAL SUPERVISION.
DISCLOSURE 7 –
- Event Date: 1/31/2013
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $30,063.00
- Judgment/Lien Type: Civil
DISCLOSURE 8 –
- Event Date: 1/21/2011
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Closed-No Action
- Disclosure Detail :: Allegations: THE COMPLAINANT ALLEGES THAT BECAUSE SHE WAS NOT CONTACTED IN A TIMELY MANNER BY THE PRODUCER, SHE WAS UNABLE TO ESTABLISH A SINGLE K IN DECEMBER 2010 AND WILL INCUR DAMAGES.
- Damage Amount Requested: $16,000.00
- Arbitration Docket Number:
DISCLOSURE 9 –
- Event Date: 3/14/2003
- Disclosure Type: Employment Separation After Allegations
- Disclosure Resolution:
- Disclosure Detail :: Firm Name: METLIFE
- Termination Type: Permitted to Resign
- Allegations: VIOLATIONS OF COMPANY POLICIES, INCLUDING APPARENT FORGERY AND ALTERING COMPANY DOCUMENTS.
- Broker Comment: ON 6/5/03 NASD COMMENCED AN INVESTIGATION INTO THE CIRCUMSTANCES (ALLEGATIONS) DISCLOSED IN THE U-5 BY METLIFE. ON 9/10/03 NASD DETERMINED TO TAKE NO ACTION REGARDING THIS MATTER. A DETERMINDATION WAS CONCLUDED TO CLOSE THE FILE PERTAINING TO THIS MATTER.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- JOSEPH STONE CAPITAL L.L.C. (CRD#: 159744) :: 6/1/2018 – 8/17/2020 :: MINEOLA, NY
- WORDEN CAPITAL MANAGEMENT LLC (CRD#: 148366) :: 12/20/2017 – 5/17/2018 :: Melville, NY
- SW FINANCIAL (CRD#: 145012) :: 8/22/2016 – 12/18/2017 :: Melville, NY
- CORINTHIAN PARTNERS, L.L.C. (CRD#: 38912) :: 9/30/2013 – 9/8/2016 :: NEW YORK, NY
- MML INVESTORS SERVICES, LLC (CRD#: 10409) :: 7/18/2008 – 4/30/2013 :: NEW YORK, NY
- AMERITAS INVESTMENT CORP. (CRD#: 14869) :: 2/2/2007 – 7/31/2008 :: NEW YORK, NY
- SIGNATOR INVESTORS, INC. (CRD#: 468) :: 3/18/2003 – 6/29/2006 :: BOSTON, MA
- METLIFE SECURITIES INC. (CRD#: 14251) :: 11/17/2000 – 3/26/2003 :: SPRINGFIELD, MA
- METROPOLITAN LIFE INSURANCE COMPANY (CRD#: 4095) :: 11/17/2000 – 3/26/2003 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Abdul Matin Rahmani, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Abdul Rahmani
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Abdul Matin Rahmani – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (4269583) for the broker – Abdul Matin Rahmani
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.