Muhammad Wahdy Faces 15-Month FINRA Suspension

Muhammad Wahdy (CRD #: 6266210), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith, has been suspended by FINRA, according to his BrokerCheck record, accessed on August 9, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On April 11, 2025, Muhammad Wahdy consented to the entry of findings that he allegedly engaged in an outside business activity without the approval of his firm from 2019 through 2023.

According to a Letter of Acceptance, Waiver & Consent (AWC), Muhammad Wahdy allegedly served as the owner, Chief Executive Officer, and Chief Compliance Officer of an investment advisory firm (“IA firm”) from June 2015 through at least May 2023. During the relevant period, he allegedly received portfolio management fees and advisory fees from this firm totaling approximately $148,000.

While registered with Ameriprise Financial Services and Wells Fargo Clearing Services, he allegedly sought approval to participate in the IA firm as an outside business activity and was denied. He allegedly also falsely stated to both brokerage firms that he was no longer involved with the IA firm and that he had no outside business activities to disclose.

From December 2022 through May 2023, Muhammad Wahdy allegedly did not seek approval from Merrill Lynch, Pierce, Fenner & Smith before engaging in his outside business activity, and allegedly certified that he had no outside business activities.

Alleged Private Securities Transaction

In February 2021, Muhammad Wahdy allegedly created a pooled investment fund and a limited partnership to serve as its general partner. He allegedly served as the sole manager of the fund and the sole owner and operator of the LP. In March 2021, he allegedly sold $250,000 of the limited partnership interests to an investor. Muhammad Wahdy allegedly also expected to receive compensation in the form of portfolio management fees.

He allegedly did not provide Wells Fargo Clearing Services with prior written notice that he formed the LP and participated in the sale of LP interests. Instead, he allegedly stated in an annual compliance questionnaire that he had not participated in a private securities transaction.

Alleged Undisclosed Brokerage Accounts

In March 2019, Muhammad Wahdy allegedly maintained two brokerage accounts at another firm while associated with Ameriprise. He allegedly had a beneficial interest in these accounts related to his IA firm. He allegedly did not notify Ameriprise of his interest in these outside accounts and failed to obtain consent to open or maintain these accounts.

Further, he allegedly failed to notify the executing firm at which he held the accounts of his association with Ameriprise.

While associated with Wells Fargo Clearing Services, he allegedly opened a third brokerage account at the same firm as the previous undisclosed brokerage accounts, also associated with his LP, and failed to disclose all three accounts to Wells Fargo. He allegedly did not notify the executing firm of his association with Wells Fargo Clearing Services.

While associated with Merrill Lynch, he allegedly did not disclose his three outside brokerage accounts or notify the executing firm of his association with Merrill Lynch.

The AWC concluded that these allegations constituted violations of FINRA Rules 3280, 3210, and 2010.

FINRA Rule 3280

FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.

FINRA Rule 3210

FINRA Rule 3210 prohibits brokers from opening brokerage accounts at firms other than their member firm without their employer’s written consent.

FINRA Rule 2010

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

Sanctions

Muhammad Wahdy consented to the following sanctions:

• 15-month suspension from associating with FINRA members
• $10,000 fine

His suspension began on April 21, 2025, and will end on July 20, 2026. You can read the full AWC here.

Other business activities

Muhammad Wahdy discloses one outside business activity on his detailed BrokerCheck report: he is General Partner of Wahdy Capital LP, a technology investment fund.

Termination from Merrill Lynch, Pierce, Fenner & Smith

On May 8, 2023, Muhammad Wahdy was fired from Merrill Lynch, Pierce, Fenner & Smith for allegedly failing to disclose an outside business activity.

Background Information

Muhammad Wahdy has passed the following exams:

• General Securities Representative Examination – Series 7TO
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63
• Uniform Combined State Law Examination – Series 66

He previously worked for the following firms:

• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Casey Securities (CRD#:35230)
• Wells Fargo Clearing Services (CRD#:19616)
• Ameriprise Financial Services (CRD#:6363)
• TD Ameritrade (CRD#:7870) 

Kurta Law Can Help

If you worked with Muhammad Wahdy and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that 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.