The Securities and Exchange Commission today sued Nadim Ahmed, a New York-based businessman and his companies, NuRide Transportation Group, LLC and NYC Green Transportation Group, LLC, alleging the making of fraudulent misrepresentations in securities offerings to investors seeking permanent residency through the EB-5 Immigrant Investor Programme - the equivalent of the Golden Passports schemes that the USA is so vociferously critical of.

The SEC also sued Ahmed along with Mehreen Shah a/k/a Mona Shah, a New York-based immigration attorney, alleging her law firm offered unregistered securities to investors in offerings that raised more than USD66 million from more than 100 investors.

Under the EB-5 Immigrant Investor Programme, investors are eligible for permanent residency status in the U.S. if they make a qualifying investment in a new commercial enterprise in the U.S. that creates a certain number of permanent full-time jobs for qualified U.S. workers.

According to the SEC’s complaint, from approximately June 2014 through December 2018, Ahmed, NuRide and NYC Green falsely told NYC Green investors that NYC Green would be operated in a manner consistent with the requirements of the EB-5 visa program and that NYC Green’s principals had contributed USD11 million to the company.

Further, Ahmed, NuRide, and NYC Green allegedly put key revenue-generating contracts in NuRide’s name despite telling investors that NYC Green would be the operating transportation business. Ahmed also allegedly used one investor’s funds to pay a portion of a prior settlement between another one of his companies and the SEC.

In addition, from June 2014 through November 2022, Ahmed, NuRide, and NYC Green, along with Shah, her law firm, and three other entities associated with Ahmed and/or Shah, allegedly offered or sold unregistered securities, including to individuals residing in the United States, in three offerings, for which no exemption to the registration requirements was available.

According to the complaint, to date, none of the investors in the offerings has received unconditional permanent residency status or a return of their investment.

“All offering materials, including those provided to investors seeking residency under the EB-5 programme, must contain accurate disclosures about the securities being issued,” said Thomas P. Smith, Jr., Associate Regional Director in the New York Regional Office. “And all securities offerings must comply with the registration requirements or the exemptions to those requirements.”

The SEC’s complaint, filed in the U.S. District Court in the Southern District of New York, alleges Ahmed, NYC Green, and NuRide breached the anti-fraud provisions and, along with Shah, her law firm, and three other entities associated with Ahmed and/or Shah, the registration provisions of the federal securities laws. The complaint seeks permanent and conduct-based injunctions, surrender of profits, pre-judgement interest and civil penalties.

It is not an action founded in criminal law.