SEC v. Ustocktrade LLC; and Anthony Weeresinghe, No. LR-25799, Southern District of New York (Aug. 2, 2023) — Press Release
raw: Ustocktrade LLC and Anthony Weeresinghe
Ustocktrade LLC and Anthony Weeresinghe, No. 1:23-cv-06756 (S.D.N.Y. Aug. 2, 2023)
summary
Ustocktrade LLC and owner Anthony Weeresinghe settled SEC charges for aiding and abetting net capital violations at their broker-dealer, resulting in $85,000 in total penalties.
paragraph
The SEC charged Ustocktrade LLC and Anthony Weeresinghe with aiding and abetting violations of net capital requirements for their broker-dealer, Ustocktrade Securities, Inc. The defendants allegedly operated trading platforms during 11 deficiency periods in 2021 and transferred remaining cash to Ustocktrade LLC to worsen capital conditions. The settlement includes permanent injunctions and civil penalties of $75,000 for the LLC and $10,000 for Weeresinghe.
narrative
The SEC charged Ustocktrade LLC and its owner, Anthony Weeresinghe, with aiding and abetting net capital requirement violations at their registered broker-dealer, Ustocktrade Securities, Inc. During 2021, the broker-dealer experienced 11 separate periods where its net capital fell below minimum requirements. Weeresinghe and Ustocktrade LLC allegedly assisted these violations by continuing to operate trading platforms during deficiency periods and directing the transfer of remaining cash to Ustocktrade LLC in November 2021. These actions exacerbated the broker-dealer's financial instability prior to its registration termination in October 2022. The defendants face charges for aiding and abetting violations of Section 15(c)(3) of the Exchange Act and Rule 15c3-l. To resolve the matter, the parties agreed to a settlement involving permanent injunctions and civil penalties of $75,000 for Ustocktrade LLC and $10,000 for Weeresinghe.
Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Parties
Securities and Exchange CommissionUstocktrade LLCAnthony Weeresinghe
Keywords
ustocktradellcweeresinghecapitalweeresinghe ustocktradenetbroker-dealer'ssec'santhony weeresinghesecurities exchangeexchange commissionaiding abettingcapital provisionssecuritiessec
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $75K $75,000 $10K–$100K
- $10K $10,000 $10K–$100K
Entities 10
- person anthony weeresinghe
- person final judgment
- agency its registration with the sec in october 2022
- agency sec investigation
- agency Securities and Exchange Commission
- agency the assistance of the financial industry regulatory authority
- company ustocktrade llc
- company ustocktrade securities, inc.
- company weeresinghe and ustocktrade llc
- agency with the sec
Triples 12
- Securities And Exchange Commission charged Ustocktrade LLC and its owner Anthony Weeresinghe
- Ustocktrade LLC owned and controlled Ustocktrade Securities, Inc.
- Ustocktrade Securities, Inc. operated An alternative trading system marketed to college students and other retail investors
- Weeresinghe and Ustocktrade LLC were notified of Eleven separate periods during 2021 when the broker-dealer's net capital fell below its minimum net capital requirement
- Ustocktrade LLC and Weeresinghe substantially assisted The broker-dealer's net capital violations
- Anthony Weeresinghe directed The broker-dealer to transfer most of its remaining cash to Ustocktrade LLC in November 2021
- Broker-Dealer withdrew and terminated Its registration with the SEC in October 2022
- Weeresinghe and Ustocktrade LLC agreed to settle With the SEC
- Final Judgment imposed penalties of $75,000 against Ustocktrade LLC and $10,000 against Anthony Weeresinghe
- SEC Investigation was conducted by Stephen LeBlanc, Timothy Halloran, and Dan Furlano
- SEC Investigation was supervised by Lisa Deitch, Peter Rosario, and Stacy Bogert
- SEC appreciates The assistance of the Financial Industry Regulatory Authority
PDF (from attached: complaint)
Text layers
Extracted body text (2,658c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25799 / August 2, 2023 Securities and Exchange Commission v. Ustocktrade LLC, No. 1:23-cv-06756 (S.D.N.Y. filed Aug. 2, 2023) SEC Charges Owners of Broker-Dealer with Aiding and Abetting Violations of Net Capital Requirements The Securities and Exchange Commission today charged Ustocktrade LLC and its owner Anthony Weeresinghe of Chestnut Hill, Massachusetts with aiding and abetting a registered broker-dealer's repeated violations of the SEC's net capital provisions. The SEC's net capital provisions are designed to ensure that broker-dealers have adequate liquid assets to meet their obligations to their customers. The SEC's complaint alleges that Weeresinghe, through Ustocktrade LLC, owned and controlled an SEC-registered broker-dealer, Ustocktrade Securities, Inc., which operated an alternative trading system that was marketed to college students and other retail investors to engage in day trading. According to the SEC's complaint, Weeresinghe and Ustocktrade LLC were notified of 11 separate periods during 2021 when the broker-dealer's net capital fell below its minimum net capital requirement. The complaint alleges that Ustocktrade LLC and Weeresinghe substantially assisted the broker-dealer's net capital violations by continuing to operate the broker-dealer's customer trading platforms to conduct unlawful securities transactions during the deficiency periods. In addition, as alleged in the complaint, in November 2021, during the broker-dealer's final net capital deficiency, Weeresinghe directed the broker-dealer to transfer most of its remaining cash to Ustocktrade LLC, worsening the capital condition of an already capital deficient broker-dealer. In October 2022, the broker-dealer withdrew and terminated its registration with the SEC. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Weeresinghe and Ustocktrade LLC with aiding and abetting the broker-dealer's violations of the net capital provisions of Section 15(c)(3) of the Exchange Act of 1934 and Rule 15c3-l thereunder. Without admitting or denying the allegations in the complaint, Weeresinghe and Ustocktrade LLC agreed to settle with the SEC and to the entry of a final judgment imposing permanent injunctions and penalties of $75,000 against Ustocktrade LLC and $10,000 against Weeresinghe. The SEC's investigation was conducted by Stephen LeBlanc, Timothy Halloran, and Dan Furlano and was supervised by Lisa Deitch, Peter Rosario, and Stacy Bogert. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. SEC Complaint
OCR text (2,658c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25799 / August 2, 2023 Securities and Exchange Commission v. Ustocktrade LLC, No. 1:23-cv-06756 (S.D.N.Y. filed Aug. 2, 2023) SEC Charges Owners of Broker-Dealer with Aiding and Abetting Violations of Net Capital Requirements The Securities and Exchange Commission today charged Ustocktrade LLC and its owner Anthony Weeresinghe of Chestnut Hill, Massachusetts with aiding and abetting a registered broker-dealer's repeated violations of the SEC's net capital provisions. The SEC's net capital provisions are designed to ensure that broker-dealers have adequate liquid assets to meet their obligations to their customers. The SEC's complaint alleges that Weeresinghe, through Ustocktrade LLC, owned and controlled an SEC-registered broker-dealer, Ustocktrade Securities, Inc., which operated an alternative trading system that was marketed to college students and other retail investors to engage in day trading. According to the SEC's complaint, Weeresinghe and Ustocktrade LLC were notified of 11 separate periods during 2021 when the broker-dealer's net capital fell below its minimum net capital requirement. The complaint alleges that Ustocktrade LLC and Weeresinghe substantially assisted the broker-dealer's net capital violations by continuing to operate the broker-dealer's customer trading platforms to conduct unlawful securities transactions during the deficiency periods. In addition, as alleged in the complaint, in November 2021, during the broker-dealer's final net capital deficiency, Weeresinghe directed the broker-dealer to transfer most of its remaining cash to Ustocktrade LLC, worsening the capital condition of an already capital deficient broker-dealer. In October 2022, the broker-dealer withdrew and terminated its registration with the SEC. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Weeresinghe and Ustocktrade LLC with aiding and abetting the broker-dealer's violations of the net capital provisions of Section 15(c)(3) of the Exchange Act of 1934 and Rule 15c3-l thereunder. Without admitting or denying the allegations in the complaint, Weeresinghe and Ustocktrade LLC agreed to settle with the SEC and to the entry of a final judgment imposing permanent injunctions and penalties of $75,000 against Ustocktrade LLC and $10,000 against Weeresinghe. The SEC's investigation was conducted by Stephen LeBlanc, Timothy Halloran, and Dan Furlano and was supervised by Lisa Deitch, Peter Rosario, and Stacy Bogert. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. SEC Complaint