Securities Arbitration Investment Fraud Lawyers » Investment and Regulatory News » FINRA Sanctions Noble Capital Markets Inc. Stockbroker For Private Placements

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Ahmed Ghassan Gheith (also known as Andy Gheith), of New York, NY, a stockbroker registered with Noble Capital Markets Inc., has been fined $7,500.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Gheith engaged in the unauthorized solicitation of private placements. Letter of Acceptance, Waiver, and Consent No. 2020065533401 (December 16, 2022).

According to the AWC, between September 2019 and January 2020, during the time that he was associated with Noble Capital Markets, Gheith solicited 40 potential investors to buy private placement offerings. Gheith cold-called prospective investors that he found through public information. Because Gheith had no previous substantive relationship with the investors he solicited, the private offering did not qualify for a registration exemption under Rule 506(b) of Regulation D. Therefore, Gheith violated FINRA Rule 2010 and Securities Act of 1933 Section 5.

This is not the first time that Gheith has been the subject of a regulatory action concerning Gheith’s conduct in the securities industry. FINRA Public Disclosure shows that Gheith has been fined $10,000.00 and suspended for one year from associating with any FINRA member in any capacity because Gheith engaged in private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2016052540603 (April 24, 2018).

According to the AWC, between April 2015 and March 2016, during the time that he was associated with Paulson Investment Company LLC, Gheith failed to disclose his involvement in private securities transactions. FINRA states that Gheith referred four customers to representatives concerning an investment in a private offering. Gheith knew that the investment was not offered or approved by Paulson Investment Company LLC. He received $93,165.00 in compensation for the referrals. Therefore, Gheith violated FINRA Rules 2010 and 3280 and NASD Rule 3040.

Gheith was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $165,000.00 in damages based upon allegations that Gheith committed fraud, made misrepresentations of material fact, and was negligent in connection with the sale of promissory notes when Gheith was associated with Paulson Investment Company LLC. FINRA Arbitration No. 17-00876 (September 25, 2018).

Gheith was associated with Paulson Investment Company LLC in New York, NY, as a stockbroker from January of 2014 to August of 2017. Paulson Investment Company LLC discharged Gheith based upon allegations that Gheith violated written supervisory procedures and was the subject of a customer complaint.

Gheith was associated with Noble Capital Markets Inc., in New York, NY, as a stockbroker from May 29, 2019, to June 10, 2021. He has been associated with Ceros Financial Services Inc. in Staten Island, NY, as a stockbroker since June 14, 2021.