A Securities and Exchange Commission (SEC) decision became final in which the firm was expelled from FINRA membership and Ahmed was barred from association with any FINRA member in any capacity. The firm and Ahmed also were ordered to pay, jointly and severally, $13,684,105.19, plus prejudgment interest, in restitution to investors. The SEC sustained the sanctions following an appeal of a National Adjudicatory Council (NAC) decision. The sanctions were based on findings that the firm and Ahmed willfully violated Section 10(b) of the Securities Exchange Act of 1934, Securities Exchange Act of 1934 Rule 10b-5, and FINRA Rules 2020 and 2010 by making misrepresentations and omissions of material fact when they sold $19.4 million of their parent company’s promissory notes to investors. The findings also stated that the firm and Ahmed violated FINRA Rule 2010 because they sold the parent company’s unregistered and nonexempt promissory notes in contravention of Section 5 of the Securities Act of 1933. (FINRA Case #2012034211301)
