Broker Ali Chehab Faces FINRA Complaint for Failing to Provide Requested Documents

The Financial Industry Regulatory Authority (FINRA) has filed a complaint against former Merrill Lynch broker Ali F. Chehab (CRD #7625979) for allegedly refusing to cooperate with an investigation into potential misconduct. FINRA’s inquiry involves allegations of selling away, unauthorized trading and material misrepresentations to customers (Case #2024082633901).

Why FINRA Filed the Complaint

According to the complaint, FINRA opened an investigation into Chehab in October 2024 after Merrill Lynch filed multiple Form U4 and U5 updates referencing client complaints and alleged violations. FINRA’s inquiry focused on:

• Selling away — recommending or facilitating investments outside his firm without approval.
• Unauthorized trading — executing transactions without proper client consent.
• Material misrepresentations — providing false or misleading information to customers.

To further its investigation, FINRA issued two requests for information and documents under Rule 8210 on October 24, 2024, and November 13, 2024, seeking emails, client communications, records of recommended investments and details on outside business activities.

Delivery records show Chehab received these requests, but he explicitly declined to comply, even stating in an email to FINRA staff: “I’m not going to provide that information and I do not care if I get barred.”

FINRA alleges Chehab’s refusal significantly impeded the investigation and also violated Rule 2010, which requires brokers to uphold high standards of commercial honor and just principles of trade.

At this stage, these are allegations only. No findings of fact or disciplinary sanctions have been issued. If Chehab fails to respond to the complaint, FINRA may proceed with disciplinary actions, which can include fines, suspensions or a permanent bar from the securities industry.

Next Steps if You’re Concerned About Your Accounts

A FINRA complaint signals that regulators are actively investigating potential misconduct. While no findings have been made yet in this case, these proceedings can have serious implications for investors who worked with Ali Chehab or Merrill Lynch.

If you suspect unauthorized trading, misrepresentation or other misconduct involving your accounts, it’s important to understand your rights and explore potential recovery options. Sonn Law Group represents investors nationwide in cases involving broker misconduct, regulatory violations and FINRA investigations. We work on a contingency fee basis, meaning you pay nothing unless we recover compensation on your behalf.

For a free, confidential consultation, call 833-912-3000 or complete our online contact form.