New York Securities Lawyer Blog
On April 11, 2013, the Financial Industry Regulatory Authority, Inc. (“FINRA”) Department of Enforcement filed a temporary cease and desist order (“TCDO”) against Success Trade Securities, Inc. (“Success Trade”), a Washington, D.C. based broker-dealer, and its Chief Executive Officer & President, Faud Ahmed, to stop Success Trade and Ahmed’s fraudulent misuse of investors’ funds and assets. Success Trade is an online discount broker-dealer that sold more than $18 million in promissory notes to 58 investors, many of them being former professional football and basketball players. FINRA filed the TCDO because it believed that ongoing customer harm and depletion of investor assets would continue before resolution of former disciplinary proceedings. Success Trade and Ahmed agreed to the filing of the TCDO. Furthermore, FINRA Enforcement filed a complaint against Success Trade and Ahmed alleging that the broker-dealer sold promissory notes issued by Success Trade’s parent company, Success Trade Inc., which promised annual interest rates of 12% to 26%. FINRA alleges that the proceeds from the promissory note sales were used to make personal loans to Ahmed, as well as to pay returns to past investors and finance the broker-dealer’s operational expenses.
Lax & Neville LLP effectively assists investors, and specifically professional athletes, on both a regional and national level, that may have suffered losses as a result of their broker and broker dealer’s sales practice abuses. Furthermore, Lax & Neville LLP has also nationally represented small broker-dealers, financial services professionals and securities industry companies in regulatory matters, including regulatory enforcement proceedings, and securities-related and commercial litigation. Please contact our team of attorneys for a consultation at (212) 696-1999.