Ahmed Ghassan Gheith of New York New York a stockbroker formerly registered with Paulson Investment Company LLC has been fined $10,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from Paulson Investment Company LLC. Letter of Acceptance Waiver and Consent No. 2016052540603 (Apr. 24, 2018).
According to the AWC, Gheith was hired by Paulson Investment Company LLC in 2014 to work alongside MH and KG – two of the firm’s existing stockbrokers. Later that year, Gheith was reportedly notified by MH and KG about a private offering that pertained to Belize Infrastructure Fund I, LLC, as well as a Belize-based real estate development. Apparently, the private offering involved the issuance of short-term notes to investors so that funds could be raised to develop an airport.
The AWC stated that Gheith was instructed by KG and MH to refer prospective investors to them; however, Gheith was aware that Paulson Investment Company LLC had not authorized the private offering for the firm’s customers, and that Gheith would be selling away from Paulson Investment Company if he acquiesced to MH and KG’s instructions.
Nevertheless, two customers of Paulson Investment Company had been contacted by Gheith in April 2015 in reference to the private offering. The AWC stated that two additional customers had been contacted by Gheith between January 2016 and March 2016. FINRA discovered that the private offering details had been addressed within Gheith’s communications with those customers. Moreover, the communications reportedly evidenced Gheith’s attempts at facilitating a meeting between the customers and MH and KG.
The AWC revealed that $3,500,000.00 had been allocated by the four customers for purposes of the private offering. Apparently, in return for Gheith’s efforts of referring those customers to MH and KG, Canyon Acquisitions LLC paid him $93,165.00. All the while, Gheith never informed Paulson Investment Company about the private securities transactions, and Paulson Investment Company never authorized his activities. Consequently, FINRA found that Gheith’s conduct was violative of FINRA Rules 2010 and 3280 as well as National Association of Securities Dealers (NASD) Rule 3040.
FINRA Public Disclosure additionally reveals that a customer filed an investment related arbitration claim pertaining to Gheith’s activities where the customer requested $1,000,000.00 in damages based upon accusations including unjust enrichment, negligence, misrepresentation and fraud in reference to the customer’s promissory note transactions that were executed during the time that Gheith was associated with Paulson Investment Company. FINRA Arbitration No. 17-00876 (Apr. 13, 2017).
On August 11, 2017, Gheith was terminated from Paulson Investment Company supported by allegations that Gheith: violated the firm’s written supervisory procedures; had been referenced in an arbitration claim alleging that the customer was defrauded; and failed to be forthcoming regarding his activities in the course of completing the firm’s compliance questionnaires.
Paulson is liable for Gheith’s conduct.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
