The man at the center of a new financial scandal that could involve some of the nation's top professional athletes said that he's running a legitimate investment business—despite a complaint from the Financial Industry Regulatory Authority.
That complaint alleges Fuad Ahmed, CEO of a Washington, DC-based firm called Success Trade Securities, failed to tell his investors what he would do with the money generated by selling promissory notes to 58 investors. FINRA said many of the investors, who contributed a total of more than $18 million, are current or former NFL and NBA players.
With investor money, FINRA says, Ahmed paid the lease on his Range Rover, made undocumented, interest-free loans to his brother, loaned himself funds to pay balances on his personal credit cards, and paid for personal travel and clothes. What's more, the complaint alleges that a series of firms operated by Ahmed used new investor money to pay returns for older investors. Some of the promissory notes, FINRA says, purported to offer annual interest rates ranging from 12 to 26 percent.