Ed Maklouf Barred by FINRA for Alleged Refusal to Provide Documents

Ed Maklouf (CRD #:6092943), a broker formerly registered with Spartan Capital Securities, has been barred by FINRA, according to his BrokerCheck record, accessed on December 14, 2024. If you want to know more about his alleged conduct as a broker, keep reading.

Bar by FINRA

On November 19, 2024, Ed Maklouf consented to the entry of findings that he allegedly refused to provide information and documents in connection with a FINRA investigation.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that FINRA requested information and documents in connection with an investigation into Ed Maklouf’s potential outside business activities, including bank and other financial records.

The AWC alleged that this alleged refusal to provide information constitutes a violation of FINRA Rules 8210 and 2010.

FINRA Rule 8210

FINRA Rule 8210 requires members to supply records, information, and testimony upon request by FINRA.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Ed Maklouf was permanently barred by FINRA starting November 19, 2024. You can read the full AWC here.

Outside Business Activities

Ed Maklouf discloses one outside business activity on his detailed BrokerCheck record: he is the President of Ahmad Maklouf, Inc., a business relating to tracking expenses.

Investor Allegations

On May 29, 2024, an investor alleged that Ed Maklouf misrepresented and omitted material facts, failed to properly execute a trade, and engaged in negligent failure to supervise, churning, and other misconduct relating to unsuitability. The client seeks $1,331,250 in damages in this pending dispute.

On December 23, 2020, he was involved in an investor dispute alleging churning, unsuitability, breach of contract, and misrepresentation. The investor is seeking $414,744.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. Misrepresenting an investment’s risks, fees, requirements, or other features violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must examine the information contained in an investor’s profile, such as their tax status, age, risk tolerance, and investing experience.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

FINRA Rule 5310

FINRA Rule 5310 requires brokers to promptly execute clients’ transactions according to their instructions. This rule also establishes that brokers must use reasonable due diligence to determine the best market for their client’s order. 

Background Information

Ed Maklouf has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Ed Maklouf previously worked with Spartan Capital Securities (CRD#:146251), Worden Capital Management (CRD#:148366), and Legend Securities (CRD#:44952).

Kurta Law Can Help

If you have worked with Ed Maklouf and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Please reach out if you have any questions about what steps to take next to recover your investment losses.