(HedgeCo.Net) The Securities and Exchange Commission today announced fraud charges against Sean Wygovsky, a trader at a major Canada-based asset management firm, in connection with a long-running and lucrative front-running scheme that Wygovsky perpetrated in the accounts of his close family members, netting more than $3.6 million in illicit gains. <\/p>\n\n\n\n
According to the SEC\u2019s complaint, from approximately January 2015 through at least April 2021, Wygovsky repeatedly traded in his family members\u2019 accounts held at brokerage firms in the United States ahead of large trades that were executed on the same days in the accounts of his employer\u2019s advisory clients. On over 600 occasions, Wygovsky allegedly bought or sold a stock for one his relatives\u2019 accounts either before the client accounts began executing a large order for the same stock on the same side of the market, or during the time period when tranches of such a large order were being executed. Then, typically before the client accounts completed their executions, Wygovsky allegedly closed out the just-established positions in his relatives\u2019 accounts, nearly always at a profit.<\/p>\n\n\n\n
\u201cAs alleged in our complaint, Wygovsky abused his position and his employer\u2019s trust by front-running the very securities transactions that he was tasked with executing for his employer\u2019s advisory clients,\u201d said Joseph G. Sansone, Chief of the SEC Enforcement Division\u2019s Market Abuse Unit. \u201cThanks to the SEC\u2019s development and use of sophisticated data analytics tools, Wygovsky\u2019s alleged scheme was uncovered and his efforts to evade detection by using family members\u2019 accounts failed.\u201d<\/p>\n\n\n\n
In a parallel action, the U.S. Attorney\u2019s Office for the Southern District of New York today announced criminal charges against Wygovsky. <\/p>\n\n\n\n
The SEC\u2019s complaint, filed in federal court in New York, charges Wygovsky with violating the antifraud provisions of the federal securities laws and seeks disgorgement of ill-gotten gains plus interest, penalties, and injunctive relief. <\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) The Securities and Exchange Commission today announced fraud charges against Sean Wygovsky, a trader at a major Canada-based asset management firm, in connection with a long-running and lucrative front-running scheme that Wygovsky perpetrated in the accounts of his close […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-78810","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/78810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=78810"}],"version-history":[{"count":2,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/78810\/revisions"}],"predecessor-version":[{"id":78812,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/78810\/revisions\/78812"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=78810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=78810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=78810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}