FORT LAUDERDALE, Fla., April 19, 2013 (GLOBE NEWSWIRE) -- Sonn & Erez PLC announces that it has filed a suit for NFL player Jason Odrick against Success Trade Inc., its CEO and President, Fuad Ahmed and Jinesh aka "Hodge" Pravin Brahmbatt. The suit, a Financial Regulatory Authority arbitration case, alleges the fraudulent sale of promissory notes and misuse of funds by Success Trade, Ahmed and Brahmbatt. These notes were sold to many current and former NFL and NBA players, solicited to purchase over $18 million dollars of promissory notes issued by Success Trade Inc., the parent company of Success Securities, also controlled by Fuad Ahmed. "We intend to aggressively prosecute this case and hold everyone who participated in this alleged Ponzi scheme at Success Trade and Jade Wealth Management responsible for their actions," said Jeffrey Erez, Esq. "Professional athletes are too often the target of promoters of financial scams because they are often young men who are financially unsophisticated and have large amounts of disposable income," added Jeffrey Sonn, Esq.
On April 11, 2013, the Financial Industry Regulatory Authority's Department of Enforcement filed a Disciplinary Proceeding against Success Trade and Ahmed. The case is FINRA Disciplinary Proceeding No. 2012034211301. In the Complaint, FINRA's Department of Enforcement alleges that Success Trade Securities, Ahmed and other registered representatives at the firm allegedly sold more than $18 million in promissory notes while misrepresenting or omitting material facts.
Specifically, FINRA's Complaint alleges that Ahmed and Success Trade misrepresented that they were raising $5 million through the sale of promissory notes and continued to make this representation, even as the sales exceeded the original offering by more than 300 percent. "Promissory notes are often used as vehicles for Ponzi Schemes," said Jeffrey Sonn, Esq.
FINRA also alleges in its Complaint that Ahmed and Success Trade failed to disclose the amount of the company's existing debt to investors; that it was unable to make future interest payments without raising money from new investors; that Ahmed and Success Trade Securities misrepresented how the proceeds would be used; improperly using the funds to make unsecured loans to Ahmed and to make interest payments to existing noteholders. FINRA further alleged that Ahmed and Success Trade misrepresented the rate of return and exempt status of the private placement offering through which the notes were sold.
Sonn and Erez PLC has represented numerous individual and institutional victims of financial scams, including professional athletes, in arbitrations and class actions seeking to recover losses either directly or from third-parties which aided and abetted the scheme. Sonn and Erez PLC is one of the leading firms nationally that fights for investors.
What Investors Should Do. If you were an investor in Success Trade promissory notes, or bought other failed investments and would like to discuss your legal rights, you may, without obligation or cost to you, call Sonn & Erez toll free at (866) 372-8311.