Amin Majidi Barred by SEC Following Securities Fraud Charges

Amin Majidi (CRD #: 1799750), a broker formerly registered with J.V.B. Financial Group, has been barred by the SEC, according to his BrokerCheck record, accessed on July 5, 2023. Read on to learn more about his alleged conduct as a broker.

Bar by SEC

On April 14, 2023, the Securities and Exchange Commission barred Amin Majidi following the rendering of final judgment in a civil action filed against him by the SEC.

The SEC’s amended complaint alleged that Amin Majidi participated in a fraudulent scheme from at least September 2015 through March 2016 in order to inflate the value of securities held by several private investment funds managed by Premium Point Investments and to hide the poor performance of these funds from potential investors.

On October 31, 2018, Amin Majidi pleaded guilty to one count of securities fraud, one count of conspiracy to commit securities fraud, one count of wire fraud, and one count of conspiracy to commit wire fraud.

These counts alleged that he participated in efforts to deceptively mismark the values of certain securities held by these private funds, therefore defrauding investors by inflating the reported net asset values of the funds.

Sanctions

On April 14, 2023, the SEC barred Amin Majidi from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organization (NRSRO)

Starting from the same date, he was also barred from participating in penny stock offerings.

Termination from J.V.B. Financial Group

On May 15, 2018, Amin Majidi was fired from J.V.B Financial Group following the filing of the SEC’s 2018 civil complaint alleging that he engaged in securities and wire fraud.

SEC Civil Complaint

On May 9, 2018, the SEC filed a civil complaint alleging that Amin Majidi and his firm Premium Point Investments engaged in a fraudulent scheme to inflate the value of securities held by several private investment funds advised by Premium Point from at least September 2015 through March 2016.

According to the complaint, this scheme was allegedly carried out by Amin Majidi, Premium Point’s CEO, the portfolio manager of one of these funds, and several Premium Point traders.

These individuals allegedly sought to hide the poor performance of these funds, encourage new investors, and retain existing investors by artificially inflating the value of these funds’ securities.

This scheme allegedly relied on a secret deal between Premium Point and a broker-dealer, wherein Premium Point would receive inflated broker quotes for mortgage securities in exchange for sending trades to the firm.

Further, Premium Point allegedly used “imputed” mid-point valuations and applied them in a way that further inflated the value of certain securities. Some securities allegedly had their value inflated by more than 100%.

The SEC alleged that this scheme resulted in Premium Point reporting inflated month-end net asset values as well as inflated month-end and annual performance information for these funds to their existing and potential investors. These inflated valuations allegedly also allowed Premium Point to receive excess fees.

The SEC alleged that Amin Majidi violated the following regulations:

• Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5(a) and (c)
• Sections 17(a)(1) and (3) of the Securities Act of 1933
• Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-8(a)(2)

The SEC further alleged that he aided and abetted Premium Point’s violations of Investment Advisers Act Sections 206(1), 206(2), and 206(4) and Rule 206(4)-8(a)(2).

Sanctions

On April 11, 2023, a final judgment was filed that enjoined Amin Majidi from future violations of the following regulations:

• Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5(a) and (c)
• Sections 17(a)(1) and (3) of the Securities Act of 1933
• Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-8(a)(2)

He was also obligated to complete certain undertakings.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Within this section, Rule 10b-5 bans fraudulent schemes as well as untrue statements and omissions of fact that mislead investors.

Securities Act of 1933

Sections 17(a)(1) and (3) of the Securities Act of 1933 prohibit the use of deceptive schemes or practices to defraud customers participating in interstate securities transactions.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Section 206(4) expands on prohibited practices, such as fraudulent marketing tactics, and describes the financial and disciplinary information that investment advisers are required to disclose to clients.

Rule 206(4)-8(a)(2) prohibits investment advisers from engaging in any acts or practices that are deceptive, manipulative, or otherwise fraudulent with regard to investors or prospective investors in pooled investment vehicles.

Criminal Charges

On May 7, 2018, Amin Majidi was charged with the following:

• Conspiracy to commit securities fraud
• Securities fraud
• Conspiracy to commit wire fraud
• Wire fraud

Background Information

Amin Majidi has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• J.V.B. Financial Group (CRD#:149758)
• Brant Point Capital (CRD#:153353)
• Deutsche Bank Securities (CRD#:2525)
• Bear, Stearns & Company (CRD#:79)
• Lehman Brothers (CRD#:7506)
• Lehman Government Securities (CRD#:19655)
• Lehman Special Securities (CRD#:7242)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Salomon Brothers (CRD#:740)

Kurta Law Can Help

If you worked with Amin Majidi and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.