A trader who allegedly perpetrated a $1 million “free-riding” scheme using instant deposit credits to invest without funding his retail brokerage accounts was sued by the Securities and Exchange Commission on Friday.
Deyonte Jahtori Anthony allegedly used his accounts to purchase equities and exchange-traded funds from an unidentified brokerage using a nearly $200,000 “immediate access” credit, despite having insufficient funds in his bank account to fund the prior deposits, according to the SEC’s suit filed in US District Court for the Middle District of North Carolina.
The broker-dealer discovered Anthony’s scheme after the $1 million deposits from his bank were ...
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