Naveed A. Khan, of Staten Island, New York, a stockbroker formerly registered with Meyers Associates, L.P., was charged by Securities and Exchange Commission (SEC) in a Complaint alleging that Khan engaged in securities fraud. United Stated Securities and Exchange Commission v. Naveed A. Khan, Docket No. 16-cv-02193 (E.D.N.Y. May 3, 2016).
According to the Complaint, Naveed received kickbacks and bribes as part of a fraudulent scheme geared towards soliciting investors to purchase stock from specific companies. Apparently, unbeknownst to investors, the company’s chairman illegally compensated individuals such as Naveed to guide investors towards purchasing the stock. The SEC alleged that Khan’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5, and Securities Exchange Act of 1933 Section 17(a).
Additionally, on May 2, 2016, the United States Attorneys’ Office for the Eastern District of New York charged Khan with conspiracy to committed wire fraud, conspiracy to commit securities fraud, securities fraud, and money laundering conspiracy. No. 16-CR-00234 (May 2, 2016). The indictment alleged that from December of 2009 to April of 2015, Khan participated in a fraudulent scheme involving Forcefield Energy stock, causing investors to suffer $131,000,000.00 in losses.
FINRA Public Disclosure also reveals that on February 14, 2006, a customer initiated investment related arbitration claim involving Khan’s conduct was settled for $8,500.00 in damages based upon allegations that Khan effected trades in the customer’s account without authorization.
Further, on August 28, 2008, a customer filed an investment related arbitration action involving Khan’s conduct, in which the customer requested $108,241.03 in damages based upon allegations that Khan churned the customer’s investment account. On January 24, 2011, another customer initiated investment related arbitration claim involving Khan’s actions was settled for $75,000.00 in damages based upon allegations that Khan effected excessive and unsuitable transactions in the customer’s investment account.
Since 2003, Khan has been associated with ten different broker dealers, two of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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