Short-Swing Trader Should Pay More Than $12 Million, Judge Says

A Bahamas-based broker-dealer firm gained more than $12 million in short-swing profits from its own trading in two companies, a judge said in recommending that the firm’s principal disgorge that amount rather than a more modest sum.

Guy Gentile’s argument that customers of his now-defunct Mintbroker International Inc. brokerage, rather than Mintbroker itself, purchased the stock fails for several reasons, Magistrate Judge Robert W. Lehrburger of the US District Court for the Southern District of New York said Oct. 6.

• The two companies, Avalon Holdings Corp. and New Concept Energy Inc., sued separately to recoup profits stemming from Mintbroker’s allegedly ...