The law firm of Oakes & Fosher is currently investigating the possible misconduct of securities broker Ahmed Gheith. According to his publicly available FINRA BrokerCheck report, Ahmed Gheith has been the subject of a customer dispute and a FINRA sanction.

Ahmed Gheith is a New York based securities broker. He has worked in the securities industry for six years. During his career he has been registered with six different securities firms.

His Registrations

  • Spartan Capital Securities (2010)
  • Aegis Capital Corp. (2010, 2013)
  • Joseph Gunnar & Co. (2010-2011)
  • Cabot Lodge Securities (2012-2013)
  • Paulson Investment Company (2014-2017)
  • Noble Capital Markets (2019-Present)

The Allegations

  • In April 2017, a customer alleged that Ahmed Gheith engaged in fraud, made negligent representations, handled their account negligently, and engaged in unjust enrichment. This case was settled for $165,00 in damages. Ahmed Gheith was discharged from his position at Paulson Investment Company in August 2017 following this complaint.
  • In April 2018, Ahmed Gheith was sanctioned by FINRA. The sanction’s findings state that Gheith received compensation for his participation in private securities transactions without providing notice or receiving approval from his member firm. FINRA’s findings state that Ahmed Gheith was hired specifically to work with two of the company’s registered representatives. The two representatives in question told Gheith about a private offering related to a real estate development located in Belize. This development was meant to be a short-term ordeal with the sole purpose of raising money to develop an airport. Ahmed Gheith was under instructions to refer any customers he believed might be interested in making such an investment to the two representatives. Gheith was aware that that Private Offering was not an approved security being offered by his firm. Taking part in this would constitute “selling away” from the firm. Due to these alleged actions, he was fined $10,000, forced to pay $31,055 in disgorgement, and suspended from acting as a securities broker in any fashion for a period of one year.

What Does This Mean?

Securities brokers are not allowed to engage in private securities transactions without disclosing it to their member firm. This is because the broker can solicit member firm customers to invest in these private securities, and often times these products can prove to be highly unsuitable. There can also be significant conflicts of interest taking place as securities brokers might begin recommending products that they have a significant financial stake in. For these reasons, it is essential that securities brokers receive authorization from their member firm before they engage in outside transactions. However, securities firms are not absolved from liability because the broker fails to obtain authorization. Securities firms need to have adequate procedures in place designed to supervise its registered brokers and prevent them from engaging in any unauthorized and potentially harmful activities.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Ahmed Gheith, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.