Omar Hammad-Randolph (Omar Waleed Hammad-Randolph CRD# 6087721) is a previously registered broker who last worked for Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691) in their Boca Raton, Florida office. FINRA suspended Omar Hammad-Randolph for borrowing $150,000 from a customer without disclosing the loan or obtaining approval from the firm.
Omar Hammad-Randolph Disclosures
Omar Hammad-Randolph has been in the securities industry since 2012 and has 4 disclosures on his publicly-available FINRA BrokerCheck report:
August, 2020: A regulatory disclosure initiated by FINRA states “Without admitting or denying the findings, Hammad-Randolph consented to the sanctions and to the entry of findings that he borrowed $150,000 from a customer at his member firm without disclosing the loan to, and obtaining approval from, the firm. The findings stated that Hammad-Randolph purchased a house for investment which he partially financed through the loan that he obtained from the customer. The findings also stated that Hammad-Randolph engaged in outside business activities without disclosing them in writing to, and obtaining approvals from, the firm for the expanded scope of his and his trust’s business activities…” Omar Hammad-Randolph was fined $10,000 and suspended in all capacities for five months.
September, 2018: An employment separation after allegations disclosure states that Omar Hammad-Randolph voluntarily resigned from Merrill Lynch, Pierce, Fenner & Smith Incorporated for “Conduct involving accepting a loan from and acting as Power of Attorney for a client without the Firm’s knowledge or approval, resulting in a loss of management confidence.”
April, 2013: A civil judgment/lien of $5,206.51 is disclosed.
August, 2010: A civil judgment/lien of $22,922.67 is disclosed.
Brokers Are Not Supposed To Borrow From Clients
According to rules and regulations established by the Financial Industry Regulatory Authority (FINRA), stock brokers are not supposed to borrow money from their clients in most circumstances. FINRA rule 3240 states that a broker should not borrow from a client unless they are an immediate family member, or the firm has written procedures for borrowing and lending.
Unfortunately, brokers do violate FINRA rules and borrow from their customers. Oftentimes, brokers borrow from an elderly client who has diminished mental capacities, which is considered elder fraud.
Broker-dealers are responsible for supervising the conduct of their registered representatives. If a broker improperly borrows from a client and doesn’t repay, losses may be recovered from the brokerage firm through FINRA arbitration. Silver Law Group has helped investors recover money that was lent to their broker.
Recover Omar Hammad-Randolph Losses Through FINRA Arbitration
Silver Law Group is a nationally-recognized securities arbitration and investment fraud law firm with extensive experience recovering losses for investors through FINRA arbitration.
Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors across the country in securities investment fraud cases. If you have investment losses, contact Scott Silver at email@example.com or toll free at (800) 975-4345 for a no cost consultation to discuss your options.