‘Dealer’ Tag in Stock-Flipping Case Upheld by Appeals Court (1)

A federal appeals court upheld a lower court order that a Florida man acted as an unregistered securities dealer, while being careful to distinguish his business from mutual funds and other asset managers.

Ibrahim Almagarby’s business, which was predicated on buying high volumes of securities and turning them around as fast as possible, met federal securities law’s definition of a “dealer,” the US Court of Appeals for the Eleventh Circuit said Wednesday.

The case drew interest from financial trade groups wary of a ruling that could’ve required more financial firms to register as dealers. The Eleventh Circuit acknowledged those concerns ...