The SEC obtained an asset freeze and court order halting an ongoing investment fraud – orchestrated by a recidivist – that falsely promised safe and unrealistic returns to persuade clients to provide access to their brokerage accounts.
According to the SEC's complaint, Mohamud Abdi Ahmed and 2waytrading LLC have been offering investment advice to clients since 2014.
Ahmed hid the fact that the SEC previously stopped him from orchestrating a securities fraud targeting Somali immigrant investors in San Diego, Seattle and elsewhere and that Ahmed had been convicted of wire fraud and ordered to pay restitution of $551,00, serve 21 months in prison, and remain on three years' supervised release.
According to the SEC's complaint, Ahmed and 2waytrading have been falsely promising unrealistic double-digit investment returns and assuring clients that Ahmed's risky options trading investment strategy is safe and secure. The complaint also alleges that Ahmed and 2waytrading are using these false claims to convince clients to give them access to their clients' brokerage accounts so Ahmed can place trades on their behalf.
Senior Judge Paul A. Magnuson of the U.S. District Court issued a temporary restraining order that imposed the freeze on Ahmed's and 2waytrading's assets and prohibits them from making any investment decisions or accessing any brokerage accounts they do not own. The order also temporarily prohibits Ahmed and 2waytrading from violating the antifraud provisions.
The SEC is seeking financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief.
FTC Obtains Court Order Requiring Owner of Precious Metals Investment Scam To Surrender Florida Home
A federal court has granted the Federal Trade Commission's request for a lien on the Florida home of Sam J. Goldman, the operator of an alleged precious metals scam that conned senior citizens.
