{"id":83159,"date":"2022-11-18T01:50:12","date_gmt":"2022-11-18T06:50:12","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=83159"},"modified":"2022-11-18T01:50:12","modified_gmt":"2022-11-18T06:50:12","slug":"sec-charges-unregistered-brokers-that-facilitated-more-than-1-2-billion-in-stock-trades","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2022\/sec-charges-unregistered-brokers-that-facilitated-more-than-1-2-billion-in-stock-trades.html","title":{"rendered":"SEC Charges Unregistered Brokers that Facilitated more than $1.2 Billion in Stock Trades"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has charged J<strong>effrey K. Galvani,<\/strong> <strong>Stuart A. Jeffery<\/strong>, and two New York-based entities they controlled with operating as unregistered broker-dealers that facilitated more than <strong>$1.2 billion<\/strong> of securities trading, primarily in penny stocks.<\/p>\n\n\n\n<p>The SEC\u2019s complaint alleges that Galvani and Jeffery \u2013 both registered brokers at a registered broker-dealer unconnected with this case \u2013 created GEL Direct Trust, which they managed through its trustee, GEL Direct, LLC. The GEL entities were not registered with the SEC as broker-dealers. Nonetheless, from 2019 through at least May 2022, Galvani and Jeffery, acting through the GEL entities, provided brokerage services to approximately 60 customers involving at least 19,000 securities trades, primarily in penny stocks. The brokerage services they allegedly provided included taking possession of customer securities, directing trades to executing brokers, facilitating trade settlements, and disbursing trading proceeds to customers.&nbsp; In return for these services, the defendants allegedly received at least $12 million in transaction-based and other compensation.<\/p>\n\n\n\n<p>\u201cBroker-dealer registration protects investors and our markets. It is not optional,\u201d said David L. Peavler, Director of the SEC\u2019s Fort Worth Regional Office. \u201cAs securities industry professionals, Galvani and Jeffery knew the rules, but we allege they didn\u2019t follow them.\u201d<\/p>\n\n\n\n<p>The SEC\u2019s complaint, filed in U.S. District Court for the Southern District of New York, charges Galvani, Jeffery, GEL Direct Trust, and GEL Direct, LLC with violating the broker-dealer registration requirement of Section 15(a) of the Securities Exchange Act of 1934 and charges Galvani and Jeffery as \u201ccontrol persons\u201d of the GEL entities under Section 20(a) of the Exchange Act. The SEC seeks permanent injunctions, disgorgement, prejudgment interest, civil penalties, and penny stock bars against all defendants.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has charged Jeffrey K. Galvani, Stuart A. Jeffery, and two New York-based entities they controlled with operating as unregistered broker-dealers that facilitated more than $1.2 billion of securities trading, primarily in penny stocks. The [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-83159","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83159","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=83159"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83159\/revisions"}],"predecessor-version":[{"id":83160,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/83159\/revisions\/83160"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=83159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=83159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=83159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}