Ziad K. Abdelnour: Is He Charged by the SEC for Scam?
What was going on with Ziad K. Abdelnour? What entangled him in the con? Come, it more.
SEC case resolution story of Ziad K. Abdelnour
Based on the scheme of Ziad K. Abdelnour to offer and sell fictitious “prime bank” securities, the Securities and Exchange Commission (SEC) sent a Notice Establishing Management and Cease-and-Desist Hearings In response to Section 8A of the Securities Act of 1933, Sections 15(b) and 21C of the Securities Exchange Act of 1934, and Section 9(b) of the Investment Company Act of 1940 (Order) on May 8, 2013.
The Order concludes that between at least September 2009 and April 2011, Ziad K. Abdelnour solicited investors through Blackhawk Partners, Inc., a fictitious private equity “family office,” to invest in trading programs that promised yields of as high as 600% in as little as seven days while posing no risk.
However, nothing of this was accurate. Ziad K. Abdelnour, a previously enrolled indicative with an MBA from one of the best business schools, attempted to sell the programs by making false statements about them on Blackhawk’s website and in emails to potential investors. He did this even after receiving a subpoena from the Commission.
The Order concludes that even though Abdelnour failed to sell any of the fictitious securities, he willfully violated Sections 17(a)(1) and (3) of the Securities Act and Section 15(a) of the Exchange Act by engaging in unregistered broker-dealer activity.
Accordingly, the Order demands that Abdelnour cease violating the aforementioned sections of the Securities Act and Exchange Act, as well as pay a civil money fine of $25,000 and follow the Order’s other requirements.
The Order also prohibited Abdelnour from working as a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or member of a nationally recognized statistical rating organization.
It also prohibited him from acting as a principal underwriter for or serving as an officer, director, employee, advisory board member, investment adviser, depositor, or employee of, a registered investment company or an affiliate of such an investment adviser, depositor, or principal underwriter.
It also includes performing as a promoter, finder, advisor, agent, or another individual who engages in operations with a broker, dealer, or issuer for the issuance of, trading in, or inducing the purchase or sale of, any penny stock; with the option to apply for return after five years to the proper autonomous business, or if there is none, to the Commission.
Without admitting or disputing any of the findings, Abdelnour agreed to the issue of the Order.
Case Settlement of Ziad K. Abdelnour
The SEC stated in the settlement that he “was aware or willfully ignored that the claims he had made regarding the personal placement schemes on Blackhawk’s website and in materials he supplied to prospective investors were false.”
Abdelnour vehemently asserted in a private declaration that he has nothing to cover up and has never put his clients or business partners in danger. He claimed that the blog was only used for instructional purposes and that no funds were exchanged, no trades were made, and no one gained or lost any money.
Blackhawk Partners: The Firm of Ziad K. Abdelnour
Proprietary “family office” Blackhawk Partners, Inc. operates primarily in two business sectors.
Blackhawk Partners, Inc. claims to be a trustworthy trader and provider of a variety of commodities to commercial and financial customers around the world.
The Firm’s goal is to support businesses in the market segments it serves as they grow and develop by being a dependable and competent partner to those businesses.
Customers of the company who are located all over the world depend on Blackhawk as a supplier of metals, minerals, crude oil, and oil derivative products.
These goods come from either Blackhawk’s directly or indirectly controlled possessions or from other parties that Blackhawk has secured.
The company feels that genuine long-term dedication to all aspects of the production and trading processes is the key to success in the commodities trading industry.
Investments in private equity and advisory services
According to Blackhawk Partners, Inc., it simultaneously advises and invests in its clients.
The primary responsibility of the firm is to serve as lead sponsor in “cash flow generating” management-led buyouts, strategic equity investments, equity private placements, consolidations, and buildups, as well as growth capital financing throughout the spectrum of asset class categories.
The organization claims to invest globally and is unconstrained by any particular industry as long as it is working with the correct “operators”.
What is sec?
The Securities and Exchange Commission (SEC) in the United States is a federal government regulatory agency that works independently. Its main responsibility is to safeguard investors, ensure the securities markets operate in a fair and orderly manner, and facilitate capital formation.
Who is Ziad K. Abdelnour?
An out-of-court agreement Ziad K. Abdelnour reached with the SEC in 2013 resulted in a $25,000 fine and a five-year ban on his ability to trade securities. Ziad K. Abdelnour is a US financier of Lebanese descent. He created Blackhawk Partners in 2006, a company for which he is now employed.
Ziad K. Abdelnour is the nephew of Salem Abdelnour, a former Lebanese financier and member of parliament from 1960 to 1964 and 1972 to 1992, and the son of industrialist and former legislator Khalil Abdelnour (1992–2000). He received his degree in finance from the Wharton School in 1984.
Ziad K. Abdelnour was a partner at Continuum Capital, a privately held merchant banking and investment company in New York City, in 1995. He was a high-yield bond broker for Michael Milken at Drexel Burnham Lambert, where he served as an investment banker.
At business conferences in the United States, Abdelnour has spoken on television and written about “wealth creation,” the trading of physical commodities, and Middle Eastern geopolitics.
Conclusion
In conclusion, I would like to add the writing of an opinion columnist-
In a piece for Dealbreaker magazine, opinion columnist Matt Levine said, “A $25,000 fine is I guess a little harsh for a scam that didn’t hurt anyone, but at the same time it’s a little mild for a deliberately fraudulent attempt to take away millions of dollars, failed or not.”
Well, I think all points are clear about Ziad K. Abdelnour and his fraud story. What are your views about him?
The Scam continues!! See 500K Dallas County, TX lawsuit & judgment against Ziad for borrowing money (to invest!) then refusing to repay the loan. Judgment has also been domesticated in NY if you’d like to follow along with that one.
Then, we have the charity fraud. His charity, The Financial Policy Council (FPC) pays for the virtual office used by his “Blackhawk Partners” virtual office AND he uses charity money to repay victims of his fraud.
This ridiculous behavior from a self-proclaimed “financial genius” whose only talent seems to be defrauding investors. Stay tuned! The FBI will catch up shortly and Ziad will run back to Lebanon with his tail between his legs.
How can Ziad K. Abdelnour sell fictitious Prime Bank securities to anyone? These are financial crimes, and I believe he intended to deceive the investors and the company, that’s why the SEC takes strict action against such fraudsters and filed various allegations against him under various sections.
After reading the article, I believe that if a person has engaged in a scam, he or she should be punished by the regulatory authority, and these types of incidences should be publicized by other platforms so that others are aware of these situations and the fraudsters.
The SEC charged $25000 for dealing as an unregistered broker activity, which is entirely unlawful, and also restricted him from dealing in securities for five years, which are both good efforts done by the SEC against these types of scammers.
This individual uses misleading marketing methods to offer certain assets and makes false claims about the program while attending the greatest business school and completing the MBA. He continued to engage in this act after they warned him.