SEC accuses New York businessman and associates of fraudulent practices in EB-5 Investment Programworld news
MUMBAI: The Securities and Exchange Commission (SEC) has leveled charges against Nadim Ahmed, a New York-based entrepreneur, and his companies, NuRide Transportation Group, LLC, and NYC Green Transportation Group, LLC. The allegations involve deceptive practices in soliciting investments from individuals aiming for permanent US residency through the EB-5 Immigrant Investor Program. Alongside Ahmed, the SEC has also implicated Mehreen Shah, also known as Mona Shah, a New York-based immigration attorney, and her law firm, for offering unregistered securities that amassed over USD 66 million from more than 100 investors.
Under the EB-5 program, investors can secure permanent residency status in the United States by making a qualifying investment in a new American business that generates a specific number of full-time jobs for eligible US workers. The SEC claims that between June 2014 and December 2018, Ahmed, NuRide, and NYC Green misled investors by falsely assuring that NYC Green would operate in compliance with the EB-5 visa program’s requirements. They also allegedly stated that NYC Green’s principals contributed USD 11 million to the company. Contrary to their assurances, Ahmed’s entities purportedly placed crucial revenue-generating contracts under NuRide’s name, despite assuring investors that NYC Green would manage the transportation business. Furthermore, Ahmed supposedly diverted one investor’s funds to settle a prior SEC case involving another company under his ownership.
Moreover, from June 2014 to November 2022, Ahmed, NuRide, NYC Green, Shah, her law firm, and three other linked entities reportedly sold unregistered securities, including to US residents, across three offerings without meeting the necessary registration exemptions.
The SEC’s complaint highlights that none of the investors involved in these offerings have obtained unconditional permanent residency status or received a return on their investments. Thomas P Smith, Jr, associate regional director in the New York regional office, emphasized the importance of accurate disclosures in materials presented to EB-5 program investors. He stressed the necessity for compliance with registration prerequisites or their corresponding exemptions in all securities offerings.
In response, the SEC’s Office of Investor Education and Advocacy released an investor alert cautioning against deceitful securities offerings within the EB-5 program. The SEC’s complaint, lodged in the US district court in the Southern district of New York, accuses Ahmed, NYC Green, NuRide, Shah, her law firm, and three associated entities of violating anti-fraud and registration provisions in federal securities laws. The complaint seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties as remedies.
Under the EB-5 program, investors can secure permanent residency status in the United States by making a qualifying investment in a new American business that generates a specific number of full-time jobs for eligible US workers. The SEC claims that between June 2014 and December 2018, Ahmed, NuRide, and NYC Green misled investors by falsely assuring that NYC Green would operate in compliance with the EB-5 visa program’s requirements. They also allegedly stated that NYC Green’s principals contributed USD 11 million to the company. Contrary to their assurances, Ahmed’s entities purportedly placed crucial revenue-generating contracts under NuRide’s name, despite assuring investors that NYC Green would manage the transportation business. Furthermore, Ahmed supposedly diverted one investor’s funds to settle a prior SEC case involving another company under his ownership.
Moreover, from June 2014 to November 2022, Ahmed, NuRide, NYC Green, Shah, her law firm, and three other linked entities reportedly sold unregistered securities, including to US residents, across three offerings without meeting the necessary registration exemptions.
The SEC’s complaint highlights that none of the investors involved in these offerings have obtained unconditional permanent residency status or received a return on their investments. Thomas P Smith, Jr, associate regional director in the New York regional office, emphasized the importance of accurate disclosures in materials presented to EB-5 program investors. He stressed the necessity for compliance with registration prerequisites or their corresponding exemptions in all securities offerings.
In response, the SEC’s Office of Investor Education and Advocacy released an investor alert cautioning against deceitful securities offerings within the EB-5 program. The SEC’s complaint, lodged in the US district court in the Southern district of New York, accuses Ahmed, NYC Green, NuRide, Shah, her law firm, and three associated entities of violating anti-fraud and registration provisions in federal securities laws. The complaint seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties as remedies.