Public records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on June 13, 2018 indicate that former New York-based Morgan Stanley broker/adviser Fuad Habba has been sanctioned by FINRA in connection to alleged rule violations and suspended from acting as a broker. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Habba (CRD# 4892638).
Fuad Habba has spent seven years in the securities industry and was most recently registered with Morgan Stanley in New York, New York (2016-2018). Previous registrations include Merrill Lynch in New York, New York (2013-2016); MetLife Securities in White Plains, New York (2008-2010); and Northwestern Mutual Investment Services in Westport, Connecticut (2007-2008). He has passed four securities industry examinations: Series 66 (Uniform Combined State Law Examination), which he obtained on March 1, 2013; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on June 22, 2007; Series 7 (General Securities Representative Examination), which he obtained on January 24, 2013; and Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on January 23, 2007. He is currently not registered with any state or firm.
According to his BrokerCheck report, Fuad Habba was recently sanctioned by FINRA and resigned from his former employer in connection to alleged rule violations.
In May 2018 FINRA sanctioned him in connection to allegations he “engaged in a check-kiting scheme” in which he wrote and deposited a total of five checks into his personal checking account at his member firm, totaling $2,765, which were drawn against other bank accounts of his which had been “closed for years prior to the deposits.” FINRA’s findings state that Mr. Habba “knew, or was reckless in not knowing” that those accounts were closed and that there were not sufficient funds to cover the checks he wrote as part of the alleged scheme. FINRA states further that after each deposit, he withdrew funds from his firm checking account, and that “In one instance, Habba would have had insufficient funds in his firm checking account to cover the withdrawals without the deposit of the bad check.” His member firm “initially credited the funds” to his account, according to FINRA, but later rejected the deposits. FINRA states that by depositing checks into his account, without having sufficient funds to cover those checks, and then immediately withdrawing funds from his account, he “obtained unauthorized loans from the firm” and was consequently engaged in check-kiting. He was issued a three-month suspension and a fine of $5,000.
In April 2017 the Internal Revenue Service filed a tax lien totaling $136,114.01 against him. The lien remains outstanding.
In 2016 he voluntarily resigned from his position at Merrill Lynch following allegations of “conduct inconsistent with Firm policy related to personal bank accounts.”
If you or someone you know has lost money investing with Fuad Habba, call the experienced attorneys at Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.