Securities Sales Draw Suspension
A discipline summary from the web page of the Massachusetts Board of Bar Overseers
The respondent, Mustafa David Sayid, is an attorney duly admitted to the Bar of the Commonwealth on December 18, 1985; he is also a member of the bars of New York and Pennsylvania. On April 30, 2024, the Supreme Court of the State of New York, Appellate Division, First Judicial Department (“Appellate Division”), suspended the respondent from the practice of law for a period of one year.
On April 17, 2017, the United States Securities and Exchange Commission (“SEC”) filed a complaint in the United States District Court for the Southern District of New York (“SDNY”), alleging that the respondent and others engaged in a fraudulent scheme to effect illegal, unregistered sales of shares in a company. Specifically, the respondent was alleged to have caused documents to be falsely backdated in order to claim an exemption from securities registration requirements pursuant to Rule 144 of Section 5 of the Securities Act.
The SDNY found that the respondent was civilly liable for violating Section 5 of the Securities Act. On July 22, 2020, the SDNY entered final judgment against the respondent, permanently enjoining him from violating Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10(b-5) thereunder. The respondent was also ordered to pay disgorgement of $25,000, prejudgment interest of $6,899 and a civil penalty of $160,000. The United States Court of Appeals for the Second Circuit affirmed the judgment of the SDNY on September 28, 2021. The SEC also permanently barred the respondent from appearing before it.
On or about December 28, 2023, the respondent and the New York Attorney Grievance Committee submitted to the Appellate Division a Joint Motion for Discipline by Consent, in which the respondent stipulated to violations of New York Rules of Professional Conduct 8.4(a), 8.4(b), 8.4(c) and 8.4(h). The Appellate Division adopted the parties’ recommendation of a one year suspension.
On or about May 21, 2024, after the respondent was suspended by the Appellate Division, bar counsel filed a Petition for Reciprocal Discipline seeking the respondent’s suspension from the practice of law in Massachusetts for one year. The respondent waived hearing and assented to the entry of an order of a one year suspension. The S.J.C. issued that order on July 11, 2024. By that order, the respondent’s reinstatement in Massachusetts is contingent on his reinstatement in New York.
(Mike Frisch)