A former Merrill Lynch broker who was under investigation for alleged misconduct is now facing a regulatory bar after refusing to cooperate with Finra’s requests for information.
According to a recent disclosure, Finra initiated inquiries into Ali Chehab, a relatively new industry entrant, after receiving a customer complaint that prompted Merrill Lynch to terminate his employment in July 2024. Finra alleges that Chehab repeatedly declined to provide requested documentation tied to accusations of unauthorized trading and other violations.
Chehab began his brokerage career with Equitable Advisors in late 2022 before joining Merrill Lynch in mid-2023. Less than a year later, Merrill discharged him following allegations of misrepresentation and “selling away”—industry jargon for executing securities transactions outside the purview of the firm.
Following his termination, Chehab has not been affiliated with another broker-dealer. His BrokerCheck record reveals two settlements with clients finalized in August 2024. In both instances, clients accused him of improperly accessing their self-directed accounts using their login credentials to place trades. One complaint was settled for more than $319,000; the other for nearly $43,000.
Rather than comply with Finra’s standard investigative process, Chehab reportedly took a defiant approach. According to Finra, the regulator sent multiple requests via email and mail throughout October and November 2024, seeking information and documents related to the misconduct allegations.
Chehab failed to respond to formal letters but sent a series of emails to Finra staff making his position clear. In a Nov. 13 communication, Finra says Chehab explicitly stated, “I’m not going to provide that information and I do not care if I get barred.”
Finra bars individuals who refuse to provide requested documentation or otherwise obstruct the investigative process, and Chehab’s refusal appears to fall squarely into that category. While it remains unclear whether he has retained legal counsel or plans to contest the action, his statements suggest no intention of defending his conduct.
For RIAs and wealth managers, the case underscores the importance of rigorous compliance oversight and the risks of onboarding advisors without adequate vetting. It also highlights how quickly reputational damage can follow when regulatory protocols are ignored or dismissed.
While rare, cases like Chehab’s serve as a reminder of the systems in place to protect clients and uphold industry integrity. Advisors who operate in good faith—and maintain clear boundaries around client account access, disclosures, and trading authority—should use this as a cautionary example of what happens when those responsibilities are neglected.
Merrill Lynch declined to comment on the matter. Chehab could not be reached, and no attorney was listed as representing him in Finra’s filings.
