For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Joseph Mahmud submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Joseph Mahmud, Respondent (AWC 20110285563, March 12, 2013).
Mahmud entered the securities industry in August 2005 and from November 2, 2009 through June 17,2011, he was dually employed with:
The AWC asserts that in May 2010, Mahmud met with a customer to discuss the purchase of a New York Life Annuity; and, accordingly, around May 18, 2010, the customer purchased an annuity via the transfer of approximately $146,799 from his401(k) to CISC.
From March 2011 through May 2011, the AWC alleges that without the customer's knowledge or authorization, Mahmud made the following unauthorized withdrawals in the net amount of $95,000 from the subject annuity [first number is the amount requested and second number is the net payment reduced by the applicable surrender charge for the transaction]:
On November 1, 2011, after purportedly detecting Mahmud's conduct, CISC credited the customer's account in the amount of $99,959.88 (inclusive of interest). As to what had tipped off CISC to Mahmud's withdrawals is not set forth in the AWC.
Adding Up The Tab
According to online FINRA records as of March 14, 2013, Mahmud:
On May 31, 2012, Mahmud allegedly pled guilty to grand larceny in the second degree and identity theft in the first degree, based, in part, on the conduct described above.
In accordance with the terms of the AWC, FINRA imposed upon Mahmud a Bar from association with any member firm in any capacity.
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