WARNING! Impending Investigation: VGTel, Inc., Sheik Khan, and Ameritas Investment Corp.
WARNING – INVESTIGATION of losses in VGTel, Inc. with Sheik Khan and Ameritas Investment Corp.
Israels & Neuman, PLC has launched an independent investigation into financial advisor Sheik Khan of Ameritas Investment Corp.
The US Attorney has alleged that Kahn took part in a pump and dump scheme ran by an individual named Edward Durante. It is alleged that from 2009 to 2015, Durante acted in concert Kahn and other financial advisors to defraud investors through the sale of stock in VGTel, Inc. (VGTL), which was essentially a shell company controlled by Durante. It is further alleged that she misrepresented the risks of VGTel, and that she failed to inform investors that Mr. Durante was previously convicted of securities fraud in 2001.
Khan was arrested in Las Vegas and faces charges of securities fraud, wire fraud, and investment adviser fraud. She was a financial advisor with Ameritas Investment Corp. from 2002 to December 2013. She worked at a branch office in Murrieta, California.
Kahn is currently suspended from the securities industry following entry of a FINRA order alleging that she sold names of her customers to an outside entity without first obtaining approval from her employer. It is further alleged that the individual with whom she dealt with in the sale of customer information had been barred from the securities industry in 2003 for stock manipulation.
Brokerage firms like Ameritas Investment Corp. have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and Seattle, but represent investors in FINRA arbitration proceedings in all 50 states. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Khan BrokerCheck 1.14.16
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