SEC CASE COLLAPSES! Court Tosses Charges Against Abdallah, Sulleman!

U.S. Securities and Exchange Commission Litigation Release No. 26569, dated June 16, 2026.

The SEC voluntarily dismissed its civil enforcement action against Kamal Zuhdi Abdallah and Zeina Abdallah. The dismissal was with prejudice, meaning the case cannot be refiled. This action occurred on July 3, 2019.

In Plain English

Imagine the SEC was trying to sue someone for breaking a rule. They filed their case, but then decided to drop it. They officially told the court they were no longer pursuing the lawsuit. This means the case is over and can't be brought back up later.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. SEC Files Enforcement Action On April 28, 2017, the U.S. Securities and Exchange Commission (SEC) initiated a civil enforcement action against Kamal Zuhdi Abdallah, also known as Kamal Sulleman. The case was filed in the Southern District of New York under case number 17-CV-3117.
2. Relief Defendant Named In addition to Kamal Zuhdi Abdallah, Zeina Abdallah was named as a Relief Defendant in the SEC's action. This indicates that Zeina Abdallah may have received or be holding assets related to the alleged violations.
3. Joint Stipulation Filed On July 3, 2019, the SEC, along with Defendant Kamal Zuhdi Abdallah and Relief Defendant Zeina Abdallah, filed a joint stipulation with the court. This filing signaled a mutual agreement regarding the future of the case.
4. Case Dismissed With Prejudice As a result of the joint stipulation, the SEC's civil enforcement action was dismissed with prejudice. This means the SEC cannot bring the same claims against these defendants again in the future.

The Enforcement Action

On July 3, 2019, the U.S. Securities and Exchange Commission filed a joint stipulation with Defendant Kamal Zuhdi Abdallah, a/k/a Kamal Sulleman and Relief Defendant Zeina Abdallah to dismiss, with prejudice, the Commission’s civil enforcement action against them. The action was filed in the U.S. District Court for the Southern District of New York (No. 17-CV-3117).

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