NYLife Sued By Investors For Misrepresentation
Amr Mostafa Amboulmagd of Horsham Pennsylvania a stockbroker formerly employed by NYLife Securities LLC is referenced in a customer initiated investment related written complaint which was settled for $15,834.58 in damages on May 30, 2017 founded on accusations that Amboulmagd made misrepresentations to the customer with respect to the fees and guarantees on a variable annuity that had been sold to the customer by him while he was associated with NYLife Securities LLC.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Amboulmagd has been identified in four additional customer initiated investment related disputes containing allegations of his misconduct during the time that he was associated with NYLife Securities LLC. In particular, on January 7, 2015, a customer filed an investment related complaint regarding Amboulmagd’s conduct in which the customer requested unspecified damages based upon accusations that the customer’s signature had been forged on disclosure forms and other documentation in order to establish a fixed annuity in the customer’s name.
Thereafter, a customer initiated investment related complaint involving Amboulmagd’s conduct was resolved for $12,862.12 in damages supported by allegations that while Amboulmagd was associated with NYLife Securities LLC, misrepresentations had been made to the customer concerning the surrender penalties associated with withdrawing funds from annuity products sold to the customer.
Additionally, a customer initiated investment related complaint concerning Amboulmagd’s activities was settled to resolve accusations that the customers were provided false or misleading information concerning insurance products, and they were placed in inappropriate investments that were funded with customers’ individual retirement account funds when Amboulmagd was registered with NYLife Securities. Moreover, on November 28, 2016, a customer filed an investment related complaint regarding Amboulmagd’s activities where the customer sought $96,000.00 in damages founded on allegations that excessive commissions or fees had been charged on insurance policies and annuity products; and the investments did not serve the customer any benefit, but rather, caused customers’ funds to be subject of penalties for liquidations.
FINRA Public Disclosure additionally confirms that Amboulmagd has been barred from associating with any FINRA member in any capacity based upon findings that Amboulmagd hindered a FINRA investigation concerning accusations of him misrepresenting investments and providing customers with bad investment advice. Letter of Acceptance Waiver and Consent No. 2015044401301 (Oct. 3, 2016).
According to the AWC, FINRA investigated the basis of Amboulmagd being terminated on April 14, 2015 from NYLife Securities LLC. Particularly, NYLIFE Securities LLC notified FINRA that it terminated Amboulmagd for making unsuitable investment recommendations; failing to make required disclosures to customers concerning their exchanges of annuity products; and engaging in conduct which led a customer of the firm to complain about Amboulmagd’s conduct. Ultimately, Amboulmagd neglected to provide recorded testimony for FINRA. FINRA found Amboulmagd’s failure to cooperate in its investigation to be violative of FINRA Rules 2010 and 8210.