According to FINRA, Raeshoun Rashidi has been fined $5,000 (deferred) and suspended from association with any FINRA member for two years for receiving and transferring funds despite red flags of illegal activity.

Rashidi agreed to receive and send funds via digital payment networks at the request of a childhood friend. He accepted deposits totaling $54,054 into his personal checking account from an individual he did not know. At his friend's direction, Rashidi then made outgoing transfers totaling $48,718 to multiple individuals he also did not know.

Rashidi did not question his friend's explanation for the deposits and payments, conducted no due diligence on any counterparties, and raised no questions about the pattern of suspicious deposits. He retained approximately $5,300 of the deposited funds for his personal use.

This type of activity - receiving funds from unknown sources and forwarding them to unknown recipients - is characteristic of money laundering schemes. Securities professionals are expected to be alert to suspicious financial activity and should not participate in transactions with obvious red flags.

Investors should be wary of anyone, including financial professionals, who asks them to receive and transfer funds for unclear purposes. Such requests are common elements of fraud schemes and can expose participants to criminal liability.