Ahmed Alomari

Full Report

Key Points

• Ahmed Alomari, a resident of Cranston, Rhode Island, is associated with MCM Consulting, an entity he controls, and has been charged by the U.S. Securities and Exchange Commission (SEC) for securities fraud and violations related to microcap stock promotion.

• From March 2019 to February 2022, Alomari allegedly promoted stocks of at least five microcap issuers without disclosing compensation, while also engaging in deceptive practices such as selling stocks he recommended to investors.

• The SEC alleges Alomari profited at least $1.4 million from selling shares in two initial public offerings (IPOs) and used false representation letters to facilitate the sale of restricted shares.

• Alomari’s activities have raised significant legal and reputational concerns, with potential penalties including permanent injunctions, disgorgement, civil fines, and a penny stock bar.

• No direct consumer feedback or business partnerships were detailed in available sources, limiting insight into his broader business network or public perception beyond the SEC’s allegations.

Overview

Ahmed Alomari is an individual based in Cranston, Rhode Island, operating through MCM Consulting, a company he controls. He has positioned himself as a social media marketing and investment consultant, leveraging platforms such as Twitter, Instagram, Facebook, investor chatrooms, and text blasts to promote microcap stocks. His activities primarily revolved around stock promotion for at least five microcap issuers between March 2019 and February 2022. Alomari is not explicitly linked to other professional roles or businesses in the provided data, though separate individuals with the same name are noted in unrelated fields (e.g., cybersecurity, national security, and technology), which are not connected to this case.

Allegations and Concerns

The SEC has filed serious charges against Alomari and MCM Consulting, including:

• Securities Fraud: Alomari is accused of violating anti-fraud provisions under Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. He allegedly promoted microcap stocks without disclosing the source or amount of compensation received from issuers.

• Non-Disclosure of Compensation: Alomari violated Section 17(b) of the Securities Act by failing to disclose payments for stock promotion, misleading investors about his impartiality.

• Deceptive Trading Practices: He allegedly invested in microcap securities, publicly recommended them, and then sold his shares for profit, including $1.4 million from two IPOs, without disclosing his actions to investors.

• False Representation Letters: Alomari reportedly directed his wife, the sole officer of MCM Consulting, to sign false letters claiming shares were available for public trading, enabling him to sell restricted shares illegally.

• Unregistered Securities Sales: The SEC alleges violations of Section 5(a) and (c) of the Securities Act for selling unregistered securities, further compounding the fraudulent conduct.

These allegations indicate a pattern of deceptive practices aimed at manipulating stock prices for personal gain, posing significant risks to investors.

Customer Feedback

No direct consumer reviews or testimonials specific to Alomari’s activities with MCM Consulting or his stock promotion efforts were found in the provided sources. The lack of publicly available feedback may stem from the niche nature of microcap stock promotion, which typically targets specific investor communities rather than a broad consumer base. Without reviews, it is challenging to gauge investor sentiment or experiences with Alomari’s services. However, the SEC’s allegations suggest that investors who acted on his recommendations may have been misled, potentially leading to financial losses.

Risk Considerations

• Financial Risks: Investors who followed Alomari’s stock recommendations may have faced losses due to his undisclosed compensation and subsequent sale of shares, which could artificially inflate and then crash stock prices. Alomari’s alleged $1.4 million in profits highlights the scale of potential investor harm.

• Reputational Risks: Alomari’s association with securities fraud allegations severely damages his credibility as an investment consultant. The public nature of the SEC’s charges, filed in the U.S. District Court for the District of Rhode Island, could deter future business opportunities or partnerships.

• Legal Risks: Alomari faces significant legal consequences, including potential permanent injunctions, disgorgement of profits, civil monetary penalties, and a penny stock bar. If convicted, these penalties could restrict his ability to operate in the financial sector and result in substantial financial liabilities.

Business Relations and Associations

• MCM Consulting: Alomari controls this entity, which served as the vehicle for his stock promotion activities. His wife is named as the sole officer, implicated in signing false representation letters to facilitate illegal share sales.

• Microcap Issuers: Alomari worked with at least five unnamed microcap issuers, receiving compensation for promoting their stocks. The identities of these issuers are not disclosed in the available data.

• No additional partnerships, affiliations, or professional networks are detailed in the context of his stock promotion activities. Other individuals named Ahmed Alomari (e.g., in cybersecurity or national security) appear unrelated based on the provided information.

Legal and Financial Concerns

• SEC Lawsuit (May 2024): The SEC filed a complaint in the U.S. District Court for the District of Rhode Island, charging Alomari and MCM Consulting with multiple securities law violations. The complaint seeks permanent injunctions, disgorgement of profits, prejudgment interest, civil penalties, and a penny stock bar. Additionally, the SEC aims to bar Alomari from acting as an officer or director of a public company.

• No Bankruptcy or Debt Records: No records of bankruptcy or unpaid debts were mentioned in the provided sources, though the SEC’s allegations suggest potential financial liabilities if disgorgement and penalties are imposed.

• Scale of Alleged Profits: Alomari’s alleged $1.4 million in profits from two IPOs indicates significant financial activity, but also underscores the potential scale of investor losses and forthcoming legal penalties.

Risk Assessment Table

 Investors and businesses should exercise extreme caution when dealing with Alomari or MCM Consulting. The SEC’s allegations suggest a high risk of financial loss and legal entanglement. Verify all investment recommendations independently, prioritize transparency in promoter disclosures, and avoid microcap stocks promoted through unverified channels. For those considering partnerships, thorough due diligence and legal consultation are essential to avoid association with ongoing litigation or reputational damage.