Effective 1 May 2019, CFA Institute imposed a Revocation of membership and of the right to use the CFA designation on Hussein Hamdy Shaalan (Montreal, Quebec), a lapsed charterholder member.
What did Hussein do?
CFA Institute found that, starting in June 2016, an investor in the United Arab Emirates hired Shaalan to manage and invest money she had set aside for retirement. He met with the investor and told her about his investment strategies. Afterwards, Shaalan emailed her a document in which he downplayed the extreme risks associated with his strategies, putting the potential loss at 10% or less, while the potential profit was touted as 60% to 80% per annum.
Anyone offering annual double-digit percentage returns is a scam artist.
In just 22 days, however, Shaalan had lost $195,000 of the $200,000 that the investor had deposited into the account.
Just how stupid is the client? This stupid:
[...] the client wired Shaalan an additional $45,000 to invest. Shaalan told her that the $45,000 infusion would help him tune the mathematical and cognitive limits of his investment strategy and potentially recover the $195,000 lost.
In the end, Hussein "The Shyster" Shaalan lost 98% of all the money that gullible woman gave him.