William Massarweh Faces One-Year Suspension by FINRA
William Massarweh (CRD #: 4040459), a broker formerly registered with FSC Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on February 28, 2023. Read on if you have questions about his alleged conduct as a broker.
Suspension by FINRA
On January 20, 2023, William Massarweh consented to the entry of findings that he allegedly served as Chief Financial Officer (CFO) for a non-profit foundation (“The Foundation”) from August 2019 through February 2021 without the knowledge or approval of his firm, FSC Securities (FSC).
According to a Letter of Acceptance, Waiver & Consent (AWC), William Massarweh served as the CFO of the Foundation starting with its establishment in August 2019. His duties included bookkeeping, tracking the Foundation’s expenses, as well as completing, signing, and filing the documentation to establish the Foundation as a non-profit organization in California.
William Massarweh allegedly failed to disclose his activities with the Foundation to FSC until December 2020 and never received approval from the firm for these activities.
In September 2019, the Foundation allegedly opened an advisory account with FSC with William Massarweh as the advisor of record. In November 2020, a trust held by a client of his at FSC instructed him to transfer $600,000 to the Foundation.
Instead, William Massarweh allegedly initiated a request to transfer these funds to an advisory account held in his own name at FSC. He allegedly mistakenly believed that this account was related to the Foundation. The AWC alleged that the funds were never transferred to him and FSC reversed the transaction.
The AWC concluded that these allegations constituted violations of FINRA Rules 3270, 2150(a), and 2010.
FINRA Rule 3270
FINRA Rule 3270 requires brokers to disclose to their firm any business activities they engage in outside it, including any compensation they expect to receive.
FINRA Rule 2150
FINRA Rule 2150(a) prohibits the improper use of investors’ funds.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
William Massarweh consented to the following sanctions:
- $10,000 fine
- 1-year suspension
His suspension began on February 6, 2023, and will end on February 5, 2024.
You can read a copy of the AWC here.
William Massarweh has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
He has also worked for the following firms:
- FSC Securities (CRD#:7461)
- Intervest International Equities Corporation (CRD#:20289)
- 1717 Capital Management Company (CRD#:4082)
Kurta Law Can Help
If you worked with William Massarweh and you have concerns about your investments, please contact us today at 877-600-0098 or email@example.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 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.