Finra says athletes were victims of Ponzi scheme
JUN 25, 2014 3:10p ET
NEW YORK (AP) The Financial Industry Regulatory Authority is barring a company from the securities industry for allegedly running a Ponzi scheme that defrauded 59 people, most of them current or retired NFL and NBA players.
Finra ordered Fuad Ahmed to pay $13.7 million to investors. It also barred Ahmed and his company, Success Trade Securities, from the industry for the Ponzi scheme and the fraudulent sale of promissory notes.
Finra says Ahmed and Success Trade sold $19.4 million in promissory notes to investors between 2009 and 2013. They say investors weren't informed that the Washington company was in bad financial shape and lost money in 13 of the previous 14 years. Ahmed allegedly used the funds for personal expenses and to pay note holders instead of using the money for business expenses.