According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Ahmed Gheith (Gheith), in August 2017, was terminated by his employer Paulson Investment Company, LLC (Paulson Investment) after the firm alleged that Gheith was terminated subsequent to discovery of violations of firm supervisory procedures, failure to provide honest answers on annual questionnaires, violations of FINRA Rule 3280, and due to initiation of customer arbitration alleging fraud, negligence, and unjust enrichment. The firm referenced that the product involved was a promissory note. Thereafter, in April 2018 FINRA Suspended Gheith.
FINRA alleged that two registered representatives informed Gheith about a private offering related to a real estate development in Belize. The investment was described as a short-term note meant to raise money for the development of an airport and Gheith thereafter referred several customers to invest. FINRA found that Gheith’s communications with four customers included a description of the Private Offering and leading the customers to invest a total of $3.5 million in the offering. FINRA alleged that Gheith was paid $93,165 for his role in soliciting and referring the customer.
FINRA’s allegations concerning promissory notes, a private securities transaction, –is known in the industry as “selling away”.