On April 12, 2013, FINRA announced that has filed a complaint against Success Trade Securities Inc, an online discount firm, and its CEO, Fuad Ahmed. The complaint alleges that Success Trade Securities Inc. fraudulently sold more than $18 million in promissory notes to 58 investors, most of them former professional football and basketball players. The notes allegedly promised annual interest rates of 12% to 26%.
Success Trade is a deep-discount firm, based in Washington, which offers stock and options trades for $2.95 to investors who pay a $65 monthly platform fee.
FINRA claims that proceeds from the promissory note sales were used to make personal unsecured loans to Mr. Ahmed, as well as to pay off past investors and fund the firm’s operations. Furthermore, FINRA alleges that Success Trade is in “dire financial condition and unable to repay principal…and relies primarily on sales of the notes to keep the firm afloat.”
In a cease-and-desist order signed on April 11, 2013, Success Trade agreed to stop selling the notes and use assets only for normal business purposes.
The Doss Firm, LLC represents investors nationwide who have lost money as a result of investment fraud or due to faulty investment advice. If you believe that you may be a victim of investment fraud and would like to speak with us, please call our firm for a free consultation.