The U.S. Attorney's Office for the Northern District of Illinois filed felony charges Tuesday against a former broker who allegedly defrauded at least three older clients out of over $950,000.
The DOJ's complaint against Naseem Mohammed Salamah, 40, of Rockford, Illinois, filed in U.S. District Court for the Northern District of Illinois, alleged that, from at least as early as August 2017 and continuing to May 2021, he "knowingly devised, intended to devise, and participated in a scheme to defraud three of his clients."
If convicted, Salamah will have to forfeit to the U.S. government any property derived from proceeds that can be traced to his fraud, including $968,582 and an 18-karat white gold necklace with a ruby, according to the complaint.
In a parallel action, the Securities and Exchange Commission filed a civil complaint against Salamah on Tuesday in the same court, making the same allegations.
Morgan Stanley Dispute
Salamah was a registered broker with Morgan Stanley from August 2010 to February 2013, according to according to his report on FINRA's BrokerCheck website, which didn't specify why he left the firm.
Morgan Stanley filed a complaint against Salamah in the same Illinois court on May 9, 2014, alleging he failed to pay the firm back for money owed on promissory notes despite a FINRA arbitration panel ordering him to pay Morgan Stanley $167,076 including interest, legal fees and other costs in September 2013.
Salamah has not been a registered broker with any FINRA-affiliated firms since leaving Morgan Stanley, according to BrokerCheck. But, from January 2013 to June 2021, Salamah was an investment advisor representative with a then state-registered investment advisor. He operated a branch office for the firm in Loves Park, Illinois and was the sole representative of the branch, according to the complaint.
