According to FINRA, Muhammad R. Wahdy of San Francisco, California was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for 15 months for operating an undisclosed investment advisory business and related violations.

Wahdy served as owner, CEO, and CCO of an investment advisory firm without notifying any of his three member firms. Through this firm, he provided investment advice to between 15 and 30 investors, managing their accounts and receiving approximately $148,000 in portfolio management and advisory fees.

Additionally, Wahdy participated in a private securities transaction by soliciting $250,000 from one investor for interests in a pooled investment fund he controlled, without disclosure to or approval from his brokerage firm. He was the sole owner and operator of this fund with responsibility for soliciting investors and making investment decisions.

Wahdy also maintained undisclosed outside brokerage accounts and failed to notify the executing firms of his association with his member firms.

Throughout this period, Wahdy submitted compliance questionnaires and attestations inaccurately stating he had no outside business activities, no private securities transactions, and had disclosed all outside brokerage accounts. These false statements prevented the firms from discovering and supervising his activities.

The combination of operating an undisclosed investment advisory business, conducting private securities transactions, maintaining secret brokerage accounts, and making repeated false attestations demonstrates systematic evasion of regulatory oversight.

The suspension is in effect from April 21, 2025, through July 20, 2026.

Investors who worked with Wahdy through either his brokerage or advisory relationships should ensure they understand all fees they were charged and review whether recommendations were appropriate.