THE U.S. Financial Industry Regulatory Authority (FINRA) has bounced a Washington D.C. investment firm off its register for what the regulator claims was a ponzi scheme pitched to NFL and NBA sports people.
A FINRA hearing panel (25 June) expelled Success Trade Securities Inc from membership and barred its CEO, Fuad Ahmed, for 'fraudulent sale of promissory notes and for creating a ponzi scheme'.
Ahmed admitted to the panel of inquiry that his trade securities firm was anything but a success, losing money in thirteen out of the last fourteen years of operations. Offer documents presented to investors omitted material facts about heavy securities trading losses. The firm's CEO had consented to an earlier FINRA cease and desist order back in 2013.
The panel said the 'firm and Ahmed are jointly and severally ordered to pay approximately $13.7 million in restitution to 59 investors, the majority of whom were current and former NFL and NBA players.'
Unless the firm or Ahmed appeal the panel's decision to FINRA's National Adjudicatory Council (NAC), their decision becomes binding after 45 days.