In addition to the Order, FINRA filed a complaint against Success Trade Securities and Ahmed, alleging securities fraud violation. The charges include fraud in the sales of promissory notes issued by the firm’s parent company, Success Trade, Inc. Many targets of this alleged fraud were National Football League ("NFL") and National Basketball Association ("NBA") player.
The complaint alleges Ahmed and Success Trade Securities sold more than $18 million in Success Trade promissory notes to 58 investors, but made misrepresentations and omitted material facts. The misrepresentations and omissions include:
- Misrepresenting the amount of money sought in the offering;
- Omitting the amount of the company’s existing debt to investors;
- Omitting the company was unable to make future interest payments without raising money from new investors;
- Misrepresenting the rate of return and exempt status of the private placement; and
- Misrepresenting the way investor funds would be used.