The District of Columbia Department of Insurance, Securities and Banking’s Interim Commissioner Chester A. McPherson issued a Notice of Intent to initiate administrative enforcement action against Success Trade Securities, Inc., Success Trade, Inc. and its President and CEO Fuad Ahmed. Success Trade Securities, Inc., a broker-dealer located in Washington, D.C., operates through two subdivisions, Just2Trade.com and LowTrades.com.
The department alleges that the companies and Ahmed engaged in fraudulent conduct that violated the District of Columbia Securities Act of 2000 and the department’s broker-dealer regulations. Specifically, the department alleges that unregistered promissory notes were issued by Success Trade, Inc. and sold by Success Trade Securities, Inc. through Fuad Ahmed and other agents of the involved broker-dealer firm.
The notice states that the companies and Ahmed allegedly made materially false and misleading statements and omissions when they sold approximately $22.1 million in unregistered promissory notes to 68 investors including current and former National Football League and National Basketball Association players. The department also alleges that Success Trade Securities, Inc. violated the District’s broker-dealer regulations by: (1) making unsuitable recommendations; (2) failing to have or enforce written supervisory procedures; and (3) failing to conduct the required due diligence in connection with the sales of Success Trade, Inc. promissory notes.
In the notice, the department asks the interim commissioner to order the companies and Ahmed to: (1) cease and desist from committing the alleged violations; (2) make restitution to involved investors; and (3) pay a civil penalty to the District. The department also asks the interim commissioner to permanently bar the companies and Ahmed from working in the securities business in the District.
The issuance of a Notice of Intent represents the department’s initiation of a formal enforcement proceeding and does not represent an official agency decision regarding the allegations contained in the notice. Under the District’s Securities Act, individuals and firms named in a Notice of Intent have the right to file a written response to the notice and to request a hearing to contest the allegations contained therein.
To view the Notice of Intent, follow this link.