New York Businessman with Fraud and Unregistered Sales of Securities to Investors Seeking Permanent Residency in the U.S.

The pursuit of the American Dream often leads many to the United States, seeking opportunities for a better life.

However, this dream can turn into a nightmare when unscrupulous individuals exploit the aspirations of immigrants. A recent case involving a New York businessman, Nadim Ahmed, and his fraudulent activities in the EB-5 Immigrant Investor Program serves as a cautionary tale for investors seeking permanent residency in the US.

The EB-5 Immigrant Investor Program

The EB-5 program offers a path to U.S. permanent residency through investment in U.S. enterprises that create jobs. Unfortunately, this program has also become a target for fraudsters like Ahmed, who prey on the hopes of immigrants.

Ahmed’s Deceptive Scheme

According to the SEC, from June 2014 through December 2018, Ahmed and his companies, NuRide Transportation Group, LLC and NYC Green Transportation Group, LLC, engaged in a scheme that misled investors about the nature of their investments and the operation of the businesses. They falsely claimed that NYC Green would be operated in line with EB-5 requirements and that the principals had invested $11 million in the company. In reality, Ahmed diverted funds for personal use and failed to meet the job creation requirements of the EB-5 program.

Collaboration with an Immigration Attorney

Compounding the fraud, Ahmed collaborated with New York-based immigration attorney Mehreen Shah (a.k.a. Mona Shah) and her law firm. They were charged with offering unregistered securities in offerings that raised over $66 million from more than 100 investors.

This collaboration highlights the sophisticated nature of the fraud, involving legal professionals to lend credibility to the scheme.

Impact on Investors

The consequences for the investors were severe. None of the investors in these offerings received their promised permanent residency status or a return on their investment. This outcome shattered dreams and left many in a precarious legal and financial situation.

SEC’s Response

The SEC has charged Ahmed, his companies, and three other entities with violating antifraud and registration provisions of federal securities laws.

The complaint seeks permanent and conduct-based injunctions, disgorgement, prejudgment interest, and civil penalties. This action demonstrates the SEC’s commitment to protecting investors and upholding the integrity of the securities market.

Investor Education

In response to such schemes, the SEC’s Office of Investor Education and Advocacy has issued an Investor Alert warning about fraudulent securities offerings through the EB-5 program.

This is crucial in educating potential investors about the risks associated with such investments.

Conclusion

The case of Nadim Ahmed and his fraudulent EB-5 scheme is a stark reminder of the risks associated with seeking permanent residency through investment. It underscores the importance of thorough due diligence and the need for potential investors to be wary of offers that seem too good to be true.

As always, the Sonn Law Group is dedicated to providing the latest information and support to help investors navigate these complex and potentially risky waters.

Stay tuned to the Sonn Law Group blog for insights and updates on similar cases.