The Securities and Exchange Commission (SEC) today announced settled charges against Texas-based investment adviser Fair Invest, LLC and its sole officer and managing member, Khalid Parekh, for making false statements and engaging in other wrongdoing in a securities offering aimed at members of the Muslim community raising approximately $18.5 million.
The SEC issued an order finding that Fair Invest and Parekh offered investors an investment product called a Wealth Building Account (WBA), which purported to conform to Islamic prohibitions against earning or charging interest. From August 2021 to August 2022, the firm sold WBAs to 373 investors in 40 states, promising dividends of up to 4% on an annualized basis.
Fair Invest represented to the investors, each of whom was a firm client, that it would generate dividends by making long-term investments…
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