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Salman Rasheed Sanctioned: Former JP Morgan Rep Allegedly Accepted Improper Customer Gifts
A disciplinary action taken by the Financial Industry Regulatory Authority against former Skokie, Illinois broker Salman Rasheed (CRD# 6421984) barred him over allegations he accepted gifts from an elderly customer in violation of firm policy. A former representative of JP Morgan Securities, Rasheed was barred from acting as a broker or otherwise associating with a broker-dealer firm.
According to a Letter of Acceptance, Waiver and Consent (No. 2017056077301) dated February 2019, Rasheed accepted five checks from an elderly firm customer, totaling $390,045 between June 25 and August 8, 2017. The checks were written from the customer’s account at an unaffiliated bank, according to FINRA’s findings, which also state that Rasheed “never disclosed” his receipt of the checks to his member firm. The findings go on to state that he opened a savings account at an unaffiliated bank on August 11, 2017, then resigned from JP Morgan eight days later and “deposited all of the checks” into that account.
FINRA’s findings state that the customer in question, who wrote the checks after the death of her husband, who had been a customer of the firm’s banking affiliate, “was suffering from dementia” when she issued the texts. She entered a nursing home in September 2017, according to FINRA, and a physician concluded that she “lacked the mental capacity to make financial decisions.” A public guardian was appointed to oversee his affairs, and following the initiation of an investigation by the guardian into “possible exploitation” of the customer, Salman Rasheed “had two cashier’s checks… issued to [her] to repay the cash gifts he accepted from her.”
According to FINRA’s findings, JP Morgan Securities’ written procedures during the period in question “generally prohibited registered representatives from accepting cash gifts from customers” except in limited circumstances. FINRA found that Rasheed’s acceptance of gifts from the customer violated FINRA rules, and consequently barred him from associating with any FINRA member in any capacity.
Salman Rasheed is not currently registered as a broker or investment advisor. His employment history includes JP Morgan Securities in Skokie, Illinois. He currently holds no state licenses and has passed three securities industry qualification examinations.