FNRG: SEC Admin Proceeding: NAVEED A. (a/k/a Nick) KHAN https://www.sec.gov/litigation/admin/2017/34-80160.pdf
3. The Commission’s complaint alleged that Khan received cash kickbacks in return for recommending and inducing his customers to buy stock in the issuer ForceField Energy, Inc. (“ForceField”) without disclosing the kickbacks to his customers. The complaint further alleged that Respondent attempted to conceal communications with other participants in the fraudulent scheme by using prepaid, disposable (i.e., “drop” or “burner”) phones and encrypted, contentexpiring messaging apps, and otherwise engaged in a variety of conduct which operated as a fraud and deceit on investors.
4. On July 27, 2016, Khan pled guilty to one count of securities fraud in violation of Title 15 United States Code, Sections 78j(b) and 78ff before the United States District Court for the Eastern District of New York, in United States v. Jared Mitchell et al., Crim. Indictment No. 1:16-CR-00234.
5. The count of the criminal indictment to which Khan pled guilty alleged, inter alia, that Khan engaged in a scheme to defraud investors and potential investors by receiving cash kickbacks to recommend and induce customers to purchase ForceField stock without disclosing those kickbacks to his customers. This conduct involved, among other things, (a) employing devices, schemes and artifices to defraud; (b) making untrue statements of material fact and omitting to state material facts necessary in order to make the statement made, in light of the circumstances under which they were made, not misleading; and (c) engaging in acts, practices and courses of business which operated as a fraud and deceit upon investors and potential investors in ForceField, in connection with the purchase and sale of investments in ForceField, directly and indirectly, by use of means and instrumentalities of interstate commerce and the mails.