Last week the SEC settled a securities fraud case with one Ziad K. Abdelnour, CEO of Blackhawk Partners, for a $25,000 fine and a five-year ban from the securities industry. The fraud was not exactly hard to recognize: anyone who, while claiming to represent “a purported private equity ‘family office,’ solicited investors to invest in trading programs that purportedly yielded returns of up to 600% in as little as seven days, with no risk,” is overcompensating. (For: fraud.)
But Abdelnour’s fraud was even more obvious; he basically said right on his website – under the bold heading “WARNING ON SCAMS” – that what he was selling was a scam. As the SEC puts it, his “website also discouraged prospective investors from heeding Commission and FBI warnings about private placement programs, stating:”1
WARNING ON SCAMS
It is very common to find on the internet so many web-sites, or message boards/links to so-called official documents, or reports of the “Financial Authorities” warning the public that this business ‘does not exist’ and any of these offers are always scams. The reports in question could have been written by the SEC, FBI, ICC or any of the regulatory authorities. . . . You should all understand that most people that work at banks, securities houses, accountant firms, etc., have no insight into this kind of trading, and they are very eager to listen and comply with everything by the authorities. So if SEC, FBI and others say that this is all a scam, then they believe so.
For all you nay-Sayers and disbelievers out there who are looking for evidence that this kind of trading exist[s]; try to learn and understand monetary history and banking and you will understand that this can, in fact, work- in theory. You don’t have to run around and try to find evidence, because unless you have USD10M to test it for yourself, then you need to rely upon others who are vouching. So we suggest that you find out the truth yourself, without listening to what others are saying.
Who are you going to believe: an SEC/FBI fraud warning, or some guy asking you to trust him with $10 million? The choice is clear. Read more »