The Securities and Exchange Commission has barred Jinesh P. Brahmbhatt, who owned Jade Private Wealth Management, a now defunct state-licensed investment adviser, for his conflicts of interests in connection with recommending that his clients purchase approximately $20 million in promissory notes.
Many of Mr. Brahmbhatt's clients were current and former NFL and NBA players.
The SEC also ordered Mr. Brahmbhatt to pay disgorgement of $1,258,691 and prejudgment interest of $170,134 to the commission, as well as a civil money penalty of $150,000 that will be transferred to the United States Treasury.
From February 2009 through at least February 2013, the SEC said that Mr. Brahmbhatt, of Gaithersburg, Md., recommended that Jade's advisory clients purchase promissory notes issued by Success Trade Inc. In late 2012 and early 2013, he recommended that the clients roll over, extend or convert the notes into STI equity, omitting disclosure that he and Jade were receiving payments from STI totaling more than $1.2 million.
The Financial Industry Regulatory Authority Inc. barred Mr. Brahmbhatt in November 2013 because he failed to appear at a disciplinary hearing for Success Trade and its CEO, Fuad Ahmed.