(888) 637-5510

Written by 3:32 pm Current Investigations, Securities Fraud Articles

Update on Sheik F. Khan and VGTel Securities Fraud Investigation


Ex-Ameritas Advisor Sheif F. Khan Barred from Securities Industry

According to an order, the Securities and Exchange Commission has barred former Ameritas adviser Sheik Khan from the securities industry. Khan of Pasadena, CA was found guilty of securities fraud by a federal court in New York in March. The case involves 100 investors who lost more than $15 million related to VGTel stock.

In an order explaining its action, the SEC said that Khan was found guilty of falsely telling prospective investors that their investments in private offerings of VGTel Inc. would benefit from prospective reverse-mergers between the company and private companies even though no merger would ever be consummated.

He also was found guilty of scheming to control and manipulate the publicly traded price of VGTel stock and scheming to induce investors to invest in private shares of the stock through false and misleading statements.

VGTel is a Suffern, N.Y.-based company that trades on the over-the-counter market.

According to his FINRA BrokerCheck report, Khan, also known as Abida Khan, was registered with Ameritas Investment Corp. in Murrieta, CA between May 2002 and December 2013. He has five disclosures listed on his Broker Report.

In January 2016, Khan was arrested in Las Vegas and charged with conspiracy, securities fraud, wire fraud, and investment adviser fraud by the U.S. Attorney’s Office for the Southern District of New York. Of the approximately $15 million invested in the fraudulent scheme devised by Khan and others, more than $9 million was funneled to the defendants and other co-conspirators, the U.S. Attorney’s Office said at the time.

Recovery of Investment losses in VGTel

The White Law Group continues to investigate potential claims on behalf of investors swindled in the VGTel scheme.

If you suffered losses investing VGTel and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.


Tags: , , , , , , , , , , , , , , , , , , , , , , , Last modified: March 25, 2019