The Justice Department and the Securities and Exchange Commission Oct. 26 charged two Florida men with defrauding broker-dealers and investors by making investments without telling them they lacked sufficient securities or cash on hand to cover their stock trades (United States v. Kupersmith; SEC v. Kupersmith).
The Justice Department filed one count of securities fraud and one count of wire fraud against Scott Kupersmith, while the SEC charged Kupersmith and Frederick Chelly in the scheme to trade risk-free at the expense of broker-dealers.
‘Free Riding.’
According to the criminal complaint filed by the U.S. Attorney for the ...
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