New York, New York (PRWEB) April 12, 2013
Zamansky & Associates LLC (“Zamansky”) announces that it is investigating Success Trade Securities, Inc. (“Success Trade”) located in Washington D.C., and its CEO & President, Fuad Ahmed. The investigation concerns sales by Success Trade and Ahmed of promissory notes to investors, the possible misuse of funds and possible legal claims investors may have to recover losses.
On April 11, 2013, the Financial Industry Regulatory Authority’s Department of Enforcement filed a Disciplinary Proceeding against Success Trade and Ahmed. The case is FINRA Disciplinary Proceeding No. 2012034211301. In the Complaint, FINRA’s Department of Enforcement alleges that Success Trade Securities, Ahmed and other registered representatives at the firm sold more than $18 million in Success Trade promissory notes to 58 investors, many of whom are current or former NFL and NBA players, while misrepresenting or omitting material facts.
Specifically, FINRA's Complaint alleges that Ahmed and Success Trade misrepresented that they were raising $5 million through the sale of promissory notes and continued to make this representation, even as the sales exceeded the original offering by more than 300 percent. Most of the notes promised to pay an annual interest rate of 12.5 percent on a monthly basis over three years, with some notes promising to pay interest as high as 26 percent.
FINRA also alleges in its Complaint that Ahmed and Success Trade failed to disclose the amount of the company's existing debt to investors and that it was unable to make future interest payments without raising money from new investors. In addition, the Complaint charges that Ahmed and Success Trade Securities misrepresented how the proceeds would be used, instead improperly using the funds to make unsecured loans to Ahmed and to make interest payments to existing noteholders. FINRA further alleges in the Complaint that Ahmed and Success Trade Securities misrepresented the rate of return and exempt status of the private placement offering through which the notes were sold.
Zamansky & Associates LLC is investigating Success Trade's sales of promissory notes to investors, the allegations of misuse of funds and possible legal claims by investors to recover losses. According to Jake Zamansky, "the Securities Industry is build on a network of relationships and we expect to find that there were firms which assisted Success Trade in its sales of these promissory notes." "Our investigation will seek to uncover culpable participant in the alleged scheme," Zamansky states.
Zamansky & Associates LLC has represented numerous victims of Ponzi schemes in class actions and arbitrations seeking to recover losses either directly or from third-parties which aided and abetted the scheme.
What Investors Can Do
If you were an investor in Success Trade promissory notes, and would like to discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414