Success Trade Securities, Inc. and its founder, Fuad Ahmed, were barred from the securities industry by a Financial Industry Regulatory Authority (FINRA) as a result of allegedly defrauding fifty-nine clients, many of which were pro athletes. FINRA also ordered the firm and Ahmed to pay $13.7 million in restitution to the investors. FINRA initiated its investigation in April 2013 when it became suspicious that Ahmed and his firm were operating a Ponzi scheme. Their suspicions caused them to file a complaint and a temporary cease and desist order to which Ahmed and the firm consented.
FINRA believes that Success Trade had sold $19.4 million dollars in fraudulent promissory notes to investors over a four year period from 2009 to 2013. According to FINRA, Ahmed used the money from the notes to pay his own personal expenses and use about $4 million to pay off some of the initial investors.
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