Jinesh Brahmbhatt also known as “Hodge,” was permanently barred by the Financial Industry Regulatory Authority or FINRA in connection with an alleged $18 million fraud perpetrated against a number of high profile National Football League and National Basketball Association players.
Brahmbhatt, also conducting business under the name Jade Private Wealth Management, agreed to an a Letter of Acceptance, Waiver and Consent with the FINRA after failing to appear and testify at a disciplinary proceeding in connection with the alleged fraud.
U.S. Department of Justice, FBI & the SEC Investigating
It was previously reported that the U.S. Department of Justice, the FBI and the U.S. Securities & Exchange Commission were investigating Brahmbhatt, and that during a two year investigation, multiple professional athletes purchased fictitous promissory notes from Brahmbhatt during the course of his association with Success Trade Securities, Inc.
Some of the Athletes Affected
Among these professional athletes are Detroit Pistons guard Brandon Knight, Cleveland Browns cornerback Joe Haden, San Francisco 49ers tight end Vernon Davis, former Washington Redskins running back Clinton Portis and former Chicago Bears defensive end Adewale Ogunleye.
Allegedly Brahmbhatt, doing business under the trade name, Jade Private Wealth Management managed finances for upwards of seventy professional athletes, at least thirty of which purchased approximately $12 million worth of the fake promissory notes.
According to FINRA
Brahmbhatt was a registered representative of Success Trade Securities, Inc. from April 4,2009 until April 8,2013. Prior to his registration with Success Trade, Brahmbhatt was registered with three other FINRA members: LPL Financial Corporation; Merrill Lynch, Pierce, Fenner & Smith, Inc. and Stratton Oakmont, which was run by the notorious Jordan Belfort, who was convicted of crimes related to stock market manipulation and running a penny stock boiler room in 1998, and which resulted in investor losses of approximately $200 million.
On April 10,2013, FINRA filed a Complaint against Success Trade and its CEO and President, Fuad Ahmed, alleging that the Firm and Ahmed engaged in an $18 million offering fraud in connection with the sale of the Notes. Fuad also appears to be a fellow Stratton Oakmont alumnus, was also found to have raised over $18 million from 58 investors, many of whom are current or former National Football League and National Basketball Association players, through the fraudulent and unregistered sales of promissory notes issued by Success Trade Securities parent company. Ahmed was alleged to have used this money to pay his own personal expenditures, pay the lease on his Range Rover and lend money to family members. (Department of Enforcement v. Success Trade Securities, Inc.. et al., Discip. Proc. No. 2012034211301).
Guiliano Law Group
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