Ahmed Ghassan Gheith (CRD #5783951, Staten Island, New York)

An AWC was issued in which Ahmed Ghassan Gheith (CRD #5783951) was fined $7,500 and suspended from association with any FINRA member in all capacities for one month. Without admitting or denying the findings, Gheith consented to the sanctions and to the entry of findings that he solicited prospective investors to purchase private placement offerings claiming exemption from registration under Rule 506 of Regulation D of the Securities Act of 1933 but without having established preexisting, substantive relationships with any of the investors. The findings stated that Gheith’s member firm began participating in two different private placement offerings before he created a substantive relationship with any of the prospective investors. None of the prospective investors had previously invested in securities offered by the firm nor did Ahmed Ghassan Gheith obtain investor questionnaires from the prospective investors prior to the time they agreed to invest in an offering. In total, investors solicited by Gheith invested $175,000 in one of the private placement offerings. Ahmed Ghassan Gheith solicited all prospective investors before having a substantive relationship with any of them. The offers and resulting sales of the private placement offerings therefore did not qualify for an exemption from registration under Rule 506(b). The suspension is in effect from January 17, 2023, through February 16, 2023. (FINRA Case #2020065533401)