Litigation Releases (Shahin Ahmed)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26433 / December 5, 2025

Securities and Exchange Commission v. Shahin Ahmed, Civil Action No. 1:25-cv-06730 (E.D.N.Y. filed Dec. 5, 2025)

SEC Charges New York Man with Defrauding Clients by Posing as a Professional Money Manager

On December 5, 2025, the Securities and Exchange Commission charged Shahin Ahmed, the personal driver of a hedge fund manager for posing as an investment professional to convince three investors to let him manage their money, resulting in their combined losses of over $1 million.

The SEC's complaint, filed in the U.S. District Court for the Eastern District of New York, alleges that from at least March 2020 to February 2022, Ahmed persuaded prospective clients that he had experience as a professional money manager at a hedge fund when, in fact, he was employed as the personal driver for a hedge fund manager, without any of the education or professional experience he claimed to have. As set forth in the complaint, Ahmed led at least one client to believe his funds would be expertly invested by the hedge fund manager for whom he drove, and presented the client with a fake investment opportunity and false reports of high returns. As alleged, Ahmed further induced that individual and a married couple to give him access to their own brokerage accounts to trade securities in those accounts. Ahmed allegedly guaranteed risk-free investment, while fraudulently collecting fees from his clients. The complaint further alleges that, contrary to his promised guarantee, Ahmed never repaid any of the trading losses that he caused.

Ahmed consented to a bifurcated settlement, subject to court approval, which provides for permanent injunctive relief against future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940. The judgment also bars Ahmed from participating in the issuance, purchase, offer, or sale of any security, other than purchasing or selling securities for his own personal accounts, and bars Ahmed from acting as or being associated with an investment adviser. The judgment further authorizes the court to determine at a later date the appropriateness and amount of any disgorgement, prejudgment interest, and civil money penalty.

On June 24, 2025, the Nassau County (New York) District Attorney's Office arraigned Ahmed on a grand larceny charge with respect to his conduct with one of his clients.

The SEC's investigation was conducted by Brenda Wai Ming Chang, Neil Hendelman and Adam S. Grace, under the supervision of Thomas P. Smith, Jr. of the SEC's New York Regional Office. The litigation will be led by Ben Kuruvilla, under the supervision of Jack Kaufman, also of the New York Regional Office.

The SEC appreciates the assistance of the Nassau County (New York) District Attorney's Office.