Abdul Matin Rahmani, Formerly of Joseph Stone Capital, Barred by FINRA Following Allegations of Undisclosed Outside Business Activities

Rahmani is also accused of providing false or misleading information to FINRA during its investigation.

Abdul Matin Rahmani (CRD#: 4269583) was registered as a broker with Joseph Stone Capital from 2018 until 2020. Previously, Rahmani was registered as a broker with Worden Capital Management from 2017 until 2018.

Rahmani has nine disclosures on his BrokerCheck report. Three disclosures involve Rahmani’s personal finances.

April 2021 Regulatory Judgment

• Status: Final
• 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
• Sanctions: Bar
• 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’s 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.

August 2020 Investigation

• 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.

December 2017 Employment Separation After Allegations

• Firm Name: SW Financial
• Termination Type: Discharged
• Allegations: Representative places a discretionary trade in a non-discretionary account.

December 2015  Employment Separation After Allegations

• Firm Name: Spectrun Financial Services
• Termination Type: Permitted to Resign
• 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.

April 2013 Employment Separation After Allegations

• Firm Name: MML Investors Services, LLC
• Termination Type: Discharged
• Allegations: Terminated in connection with conducting an unapproved outside business activity while on special supervision.

March 2003 Employment Separation After Allegations

• 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 determination was concluded to close the file pertaining to the matter.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Abdul Matin Rahmani. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.