According to FINRA, Mehdi Ahmad El Sayed Mohamad (CRD #7474704), a former registered representative based in Woodside, New York, was barred from association with any FINRA member firm in all capacities. The bar was issued on August 27, 2024, through an Acceptance, Waiver, and Consent (AWC) agreement under FINRA Case #2024081490001.
El Sayed Mohamad was found in violation of FINRA rules after he refused to produce information and documents requested by FINRA in connection with its investigation of allegations made by his former member firm on a Form U5. The Form U5, formally known as the Uniform Termination Notice for Securities Industry Registration, is a mandatory regulatory filing that broker-dealers must submit when a registered representative leaves the firm. The form includes disclosures about the reason for the representative's departure, which become part of the individual's permanent regulatory record.
In this case, the Form U5 disclosed that El Sayed Mohamad was discharged by his firm for making unauthorized charges to a customer's affiliate bank credit card for his personal use. This type of conduct constitutes conversion, which is the unauthorized taking or use of another party's funds or property for personal benefit. Making unauthorized charges to a customer's credit card is not merely a regulatory violation; it is a fundamental breach of the trust that customers place in their financial professionals and may also constitute criminal conduct.
The allegations are particularly concerning because they involve a direct taking from a customer. Unlike some regulatory violations that may involve technical rule infractions or failures of supervision, unauthorized use of a customer's credit card represents a deliberate act of financial exploitation. Customers entrust their personal financial information to their brokers and the firms they work for, and the misuse of that information for personal gain is among the most egregious forms of broker misconduct.
When FINRA sought to investigate these serious allegations by requesting information and documents from El Sayed Mohamad, he refused to cooperate. Under FINRA Rule 8210, all persons associated with a FINRA member firm are required to provide information and documents when requested by FINRA in furtherance of its regulatory investigations. This obligation extends to former associated persons as well. Failure to comply with a Rule 8210 request is an independent sanctionable violation that typically results in a bar from the securities industry.
Without admitting or denying the findings, El Sayed Mohamad consented to the sanction and the entry of findings against him. He is now permanently prohibited from associating with any FINRA-registered broker-dealer in any capacity.
Investors should carefully monitor all accounts connected to their brokerage relationship, including any affiliated banking products. Unauthorized charges or transactions should be reported immediately to the firm's compliance department. FINRA's BrokerCheck tool allows investors to research the background and disciplinary history of any registered broker before entrusting them with access to personal financial information.
