The U.S. Securities and Exchange Commission has filed a lawsuit against an individual accused of defrauding investors by misrepresenting himself as a professional money manager.
According to the complaint, defendant Shahin Ahmed allegedly misled investors into believing he was an experienced investment professional between March 2020 and February 2022. While employed as a driver at a registered investment advisory firm identified in the complaint as Investment Adviser A, Ahmed allegedly claimed to have substantial investment management experience. The SEC alleges he persuaded at least one investor to deposit funds into Honest Partners LLC, an entity he created with a name similar to his employer’s firm.
The complaint further alleges that Ahmed obtained control over online brokerage accounts belonging to that investor and a married couple by promising guaranteed returns and reimbursement for trading losses. The SEC claims these representations were false and resulted in investor losses exceeding $1 million.
Ahmed is accused of violating multiple federal securities laws, including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks injunctive relief, disgorgement of alleged ill-gotten gains, civil monetary penalties, and an industry bar prohibiting Ahmed from acting as an investment adviser or participating in the securities industry.
The plaintiff is represented by attorneys Thomas P. Smith Jr., Adam S. Grace, Brenda Chang, and Ben Kuruvilla of the SEC’s New York Regional Office. The case was filed in the United States District Court for the Eastern District of New York.