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Norman Zadeh/Zada

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Jan 29th, 2012
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  1. Norman C Zadeh/Zada, age 61
  2. 11803 Norfield Court
  3. Los Angeles, CA 90077
  4. (310) 476 - 0700
  5.  
  6. Address registered on Perfect10.com:
  7. OpenBeauty (OpenBeauty.com)
  8. P.O. Box 3398
  9. Beverly Hills, CA 90212
  10. (310) 205 - 9988
  11. Fax: (310) 205 - 9642 (Registered to "Money Manager")
  12.  
  13. OpenBeauty.com administrator:
  14. Inna Khusid, age 39 (some sources say 50-54, but birth year says 1972)
  15. i) 2392 Achilles Dr
  16. Los Angeles, CA 90046
  17. ii) 4231 Tujunga Ave, Apt A
  18. Studio City, CA 91604
  19. Also associated with: Donna Castorino
  20. (310) 205 - 9988
  21. Cell: (310) 486 - 5859
  22. Office: (818) 755 - 5500
  23. Fax: (818) 755 - 5511
  24.  
  25. Norman Zadeh relatives:
  26. Fay A Zadeh, age 111 (assumed deceased)
  27. Aagla C Terzian
  28. Anne/Annie Sayad Zadeh, age 49
  29. Stella Zadeh, deceased at age 58, current age would be 64 [1]
  30. Alexander S Zadeh, age 80
  31. Ralph J Zadeh, age 46
  32. Margerit Zadeh
  33.  
  34. Inna Khusid relatives:
  35. Esfira M Khusid, age 71
  36. Aleksander G Khusid, age 49
  37. Olga Faynshteyn-Khusid, age 44
  38. Grigory B Khusid, age 75
  39.  
  40.  
  41. Inna Khusid registered a for-profit company within the state of California named
  42. "Unicoom, Inc." in 2009, corporation number C3205152, which (as of January
  43. 2012) is suspended. [2][3][4] "Unicoom, Inc." is still listed as an alcohol
  44. importer by the Alcohol and Tobacco Tax and Trade Bureau. [5]
  45.  
  46.  
  47.  
  48. Norman Zadeh/Zada [6] has a for-profit company named "Perfect 10, Inc.", established
  49. in 1996. [2] However, he has just recently sued Megaupload in January 2011,
  50. after suing "CCBill, LLC" in 2007, and Google in 2005. [7][8][9]
  51.  
  52. Here's a little cease-and-desist order from Mr. Norman Zadeh's past: [10]
  53.  
  54. III.
  55.  
  56. On the basis of this Order and the Offers submitted by the
  57. Respondents, the Commission finds that:
  58.  
  59. A.RESPONDENTS
  60.  
  61. 1.Prime Advisors, Inc. ("PAI"), a Virginia corporation, is an
  62. investment adviser which has been registered with the Commission
  63. since April 1997 (File No. 801-54189). PAI serves as general
  64. partner to at least six private investment, i.e. hedge fund,
  65. limited partnerships (collectively, "the PAI partnerships").
  66. Since 1991, PAI has served as investment adviser to the PAI
  67. partnerships by providing investment advice and services in
  68. exchange for compensation. PAI is equally co-owned by Norman
  69. Zadeh and Jeffrey Goodstein, its sole officers and directors.
  70.  
  71. 2.Norman Zadeh ("Zadeh"), age 47, is an investment adviser who
  72. has been registered with the Commission since October 1989 (File
  73. No. 801-35475). Zadeh's business consists primarily of managing
  74. individual accounts. Zadeh, who resides in Beverly Hills,
  75. California, holds a Ph.D. in mathematics and is a co-owner of
  76. PAI. He is a registered representative associated with American
  77. Eastern Securities, Inc. and Wharton Equity Corporation
  78. ("Wharton"), both registered broker-dealers, and currently holds
  79. Series 3, 7, 63 and 65 licenses. From 1983 to at least 1994,
  80. Zadeh administered two nationwide investment contests, Money
  81. Manager Verified Ratings and U.S. Investing Championship.
  82.  
  83. 3.Jeffrey Goodstein ("Goodstein"), age 41, resides in Richmond,
  84. Virginia. Goodstein, an inactive member of the Virginia bar,
  85. previously owned two formerly registered investment advisers,
  86. Allied Capital Management, Inc. and Old Dominion Management Co.,
  87. and owns an active corporation, HF Administration, Inc.
  88. Goodstein, a co-owner of PAI, is a registered representative with
  89. Wharton, and currently holds Series 3, 7, 63 and 65 licenses.
  90.  
  91. [..snip..]
  92.  
  93. C.VIOLATIVE CONDUCT
  94.  
  95. 1.Securities and Investment Company
  96. Registration Violations: Sections 5(a) and
  97. 5(c) of the Securities Act and Section 7(a)
  98. of the Investment Company Act
  99.  
  100. During the relevant period, PAI served as general partner and
  101. investment adviser to the six PAI partnerships. Its owners,
  102. Zadeh and Goodstein, channelled advisory clients to PAI and the
  103. partnerships through their respective registered advisory firms,
  104. Norman Zadeh (owned by Zadeh), and Old Dominion Management Co.
  105. and Allied Capital Management, Inc. (both owned by Goodstein),
  106. and through a newsletter (described below). Most of Zadeh's
  107. clients were initially attracted by two investment ratings
  108. contests, which Zadeh sponsored and advertised in various
  109. financial publications. From approximately 1983 to 1992, the
  110. published results for the contests listed contestants and their
  111. ranking, along with a phone number. From approximately 1993 to
  112. 1994, a toll-free number was listed with the published results.
  113.  
  114. Upon being telephoned by persons and entities seeking information
  115. about the contests and their participants, Zadeh, on behalf of
  116. PAI, would solicit an investment in the PAI partnerships and
  117. record the callers' personal information on a mailing list that
  118. ultimately grew to approximately 11,000 names. Persons and
  119. entities on the mailing list were mailed a newsletter which,
  120. beginning in 1991, among other things, recommended an investment
  121. in the PAI partnerships. On occasion, Zadeh referred callers who
  122. wanted information regarding the PAI partnerships to Goodstein,
  123. who answered the callers' questions and mailed the appropriate
  124. prospectuses to interested callers.
  125.  
  126. Through these telephone and newsletter contacts, PAI, through
  127. Zadeh and Goodstein, generally solicited investors in the offer
  128. and sale of interests in the PAI partnerships. At the time of
  129. such solicitations, no registration statement had been filed or
  130. was in effect for the PAI partnership interests, which are
  131. securities in the form of investment contracts. No exemption
  132. from registration was available for such interests. Thus, PAI
  133. willfully violated Sections 5(a) and 5(c) of the Securities Act.
  134. Zadeh and Goodstein, as the owners of and primary actors on
  135. behalf of PAI, caused such violations through their general
  136. solicitation efforts. In addition, because Zadeh and Goodstein
  137. directly offered and sold unregistered securities, they willfully
  138. violated Sections 5(a) and 5(c) of the Securities Act.
  139.  
  140. None of the PAI partnerships was registered with the Commission
  141. as an investment company. The PAI partnerships (through their
  142. general partner, PAI, and through PAI's only directors, Zadeh and
  143. Goodstein) are issuers that have primarily engaged since 1991 in
  144. investing, reinvesting, or trading in securities, including
  145. equity securities and mutual fund shares. This conduct caused
  146. each PAI partnership to fall within the definition of investment
  147. company under Section 3(a)(1)(A). Because PAI, through Zadeh and
  148. Goodstein, publicly offered the partnerships' securities to
  149. investors, the PAI partnerships did not qualify for the exclusion
  150. under Section 3(c)(1) of the Investment Company Act. By offering
  151. and selling their interests without first having registered with
  152. the Commission as investment companies, the PAI partnerships
  153. willfully violated Section 7(a) of the Investment Company Act.
  154.  
  155. PAI, the partnerships' general partner, and Zadeh and Goodstein,
  156. PAI's sole officers and directors, ran the day-to-day operations
  157. of the PAI partnerships. Thus, they had actual knowledge that
  158. the PAI partnerships were engaged primarily in the business of
  159. investing and reinvesting in, and trading securities, but were
  160. not registered with the Commission as investment companies. By
  161. controlling and operating the PAI partnerships, which they knew
  162. were not registered with the Commission, PAI, Zadeh and Goodstein
  163. provided substantial assistance to the operation of six
  164. unregistered investment companies. Accordingly, PAI, Zadeh and
  165. Goodstein willfully aided and abetted and caused the PAI
  166. partnerships' violations of Section 7(a) of the Investment
  167. Company Act.
  168.  
  169. 2.Failure to Make and Keep Required Books and
  170. Records: Section 204 of the Advisers Act and
  171. the Rules Thereunder
  172.  
  173. From September 1991 through at least July 1993, Zadeh, while
  174. making use of the mails and telephone in connection with his
  175. business as an investment adviser, failed to make and keep
  176. general and auxiliary ledgers, as required by Rule 204-2(a)(2) of
  177. the Advisers Act.
  178.  
  179. Section 204 of the Advisers Act requires every investment adviser
  180. who makes use of the mails or of any means or instrumentality of
  181. interstate commerce in connection with its business as an
  182. investment adviser to make and keep such records and disseminate
  183. such reports as prescribed by the Commission. By failing to make
  184. and keep true, accurate, and current general and auxiliary
  185. ledgers, Zadeh willfully violated Section 204 of the Advisers Act
  186. and Rule 204-2(a)(2)thereunder.
  187.  
  188. Would you like to be the pot, or the kettle, Mr. Zedah?
  189.  
  190.  
  191.  
  192.  
  193. References:
  194. [1] http://www.thefreelibrary.com/STELLA+ZADEH,+TALENT+AGENT+AND+JOURNALIST,+DIES+AT+AGE+58.-a0147304053
  195. [2] http://kepler.sos.ca.gov/cbs.aspx
  196. [3] http://california.14thstory.com/unicoom-inc.html
  197. [4] http://www.bizapedia.com/ca/UNICOOM-INC.html
  198. [5] http://www.ttb.gov/foia/xls/frl-alcohol-importers-ca-alameda-to-napa.htm
  199. [6] http://www.bittenandbound.com/wp-content/uploads/2009/08/full_joan_rivers_and_boyfriend_05_wenn5336595.jpg
  200. [7] http://freecourtdockets.com/DocketSummaries/BLM-Perfect-10-Inc-v-Megaupload-Limited-3-11-cv-00191-California-Southern-Federal-District-Court-Docket-Case-Summary-39463.htm
  201. [8] http://en.wikipedia.org/wiki/Perfect_10,_Inc._v._CCBill_LLC
  202. [9] http://en.wikipedia.org/wiki/Perfect_10,_Inc._v._Google_Inc.
  203. [10] http://www.sec.gov/litigation/admin/337560.txt
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