Allstate Financial Services Broker Barred in Misappropriation Investigation
Shakif A. Khalil, of Ypsilanti, Michigan, a registered representative with Allstate Financial Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he failed to cooperate with a FINRA investigation into allegations that Khalil misappropriated funds from customers. Letter of Acceptance, Waiver and Consent, No. 2015046559501 (Feb. 18, 2016).
According to the AWC, on August 12, 2015, FINRA was provided a Uniform Termination for Securities Industry Regulation Form U5 from Allstate, which disclosed that Allstate terminated Khalil’s membership. The AWC stated that FINRA began investigating Khalil, pursuant to Rule 8210. The AWC indicated that Khalil received a December 2, 2015 request from FINRA to provide recorded testimony in reference to the allegations that two of the firm’s customers’ auto insurance premiums, amounting to $714, were misappropriated by Khalil. Khalil reportedly did not attend the on-the-record testimony on the December 16, 2015 scheduled date.
The AWC reported that Khalil had a telephone conversation with FINRA on December 3, 2015, where Khalil indicated that he had received FINRA’s request for testimony, yet he would not be appearing for such at any point. FINRA found that Khalil violated FINRA Rules 2010 and 8210 as a result of Khalil’s failure to attend testimony. This led to Khalil’s bar.
Public disclosure records via FINRA’s BrokerCheck reveal that Khalil has been subject to three disclosure incidents. On April 16, 2008, Khalil was subject to a bankruptcy discharge. On August 10, 2015, Allstate reported that Khalil was discharged via termination after allegations surfaced from Allstate’s parent property and casualty insurance company that Khalil had reportedly misappropriated the aforementioned auto insurance premiums.
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