2025-03-06 sec-litreleases litigation_release 65 KB 2,056 chars

SEC v. Rey D. Acosta, No. LR-26261, Middle District of Pennsylvania (Mar. 6, 2025) — Press Release

raw: Rey D. Acosta

Rey D. Acosta, No. 3:23-cv-00323 (Mar. 6, 2025)

Caption
BRIDGEMAN v. 3M COMPANY
Source PDF JSON
summary

The SEC obtained a final judgment against Rey D. Acosta for a 'free-riding' scheme involving fraudulent transfers, resulting in a permanent injunction and a $15,000 civil penalty.

paragraph

Rey D. Acosta of Shenandoah, Pennsylvania, was charged with conducting a fraudulent 'free-riding' scheme by making $1.5 million in transfers from an underfunded bank account. He used these temporary funds to execute over $120,000 in stock purchases and sales for profit before the transfers were reversed. Acosta consented to a final judgment that includes a $15,000 civil penalty and a permanent injunction against future securities law violations.

narrative

The Securities and Exchange Commission obtained a final judgment against Rey D. Acosta of Shenandoah, Pennsylvania, for orchestrating a fraudulent 'free-riding' scheme. In January 2023, Acosta made a series of transfers totaling $1.5 million into his brokerage account from a bank account he knew lacked sufficient funds. Before the transfers were reversed for insufficient funds, Acosta purchased three different stocks for more than $120,000 and sold them for a profit. Following the reversal, the brokerage firm closed his account, preventing him from withdrawing the illicit profits. Without admitting or denying the allegations, Acosta consented to a judgment that permanently enjoins him from violating Exchange Act Section 10(b) and Rule 10b-5. Additionally, the judgment requires him to pay a $15,000 civil penalty and prohibits him from opening new brokerage accounts without disclosing the SEC's complaint.

Enriched metadata

Scheme
accounting-fraud (70%)
Court
Middle District of Pennsylvania
Case No.
3:23-cv-00323
Outcome
settled
Civil penalty
$15,000
Victim loss
$120,000
Entity
Rey D. Acosta
Classified accounting-fraud(confidence 70%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Rule 10b-5
Parties
BRIDGEMAN3M COMPANY
Keywords
acostasecurities exchangeexchange commissionfinalreyexchangecommissiontransfersbrokerageaccountmarch securitiesfinal againstfraudulent free-ridingfree-riding schemesufficient funds

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 3
  • $1.50M $1.5 million $1M–$10M
  • $120K $120,000 $100K–$1M
  • $15K $15,000 $10K–$100K
Entities 6
  • person brokerage firm
  • person final judgment
  • person jack easton
  • person rey d. acosta
  • agency sec’s investigation in philadelphia regional office
  • agency Securities and Exchange Commission
Triples 8
  • Securities And Exchange Commission obtained final judgment against Rey D. Acosta of Shenandoah, Pennsylvania
  • Rey D. Acosta made transfers totaling $1.5 million into his brokerage account from a bank account that lacked sufficient funds
  • Rey D. Acosta purchased and sold three different stocks for more than $120,000
  • Brokerage firm closed Acosta’s account after fraudulent transfers were reversed
  • Rey D. Acosta consented to entry of final judgment permanently enjoining him from violating Exchange Act Section 10(b) and Rule 10b-5
  • Final judgment requires Rey D. Acosta to pay a $15,000 civil penalty
  • Securities And Exchange Commission investigated Rey D. Acosta’s fraudulent free-riding scheme
  • Jack Easton conducted SEC’s investigation in Philadelphia Regional Office
PDF (from attached: complaint)
Complaint For Violations Of Federal Securities Laws · Source
Text layers
Extracted body text (2,056c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26261 / March 6, 2025 Securities and Exchange Commission v. Rey D. Acosta, No. 3:23-cv-00323 (M.D. PA. filed Feb. 24, 2025) SEC Obtains Final Judgment Against Pennsylvania Man for His Fraudulent "Free-Riding" Scheme On March 6, 2025, the Securities and Exchange Commission obtained a final judgment against Rey D. Acosta of Shenandoah, Pennsylvania, who was charged with conducting a fraudulent "free-riding" scheme in which he attempted to profit by purchasing and selling stocks without having sufficient funds to pay for the trading. The SEC’s complaint alleged that, in January 2023, Acosta fraudulently made a series of transfers totaling $1.5 million into his brokerage account from a bank account that he knew lacked sufficient funds to cover the transfers and these transfers were subsequently reversed for insufficient funds. The complaint further alleges that prior to the reversal, Acosta purchased three different stocks for more than $120,000 and sold the stocks for a profit. According to the complaint, after the fraudulent transfers were reversed, the brokerage firm closed Acosta’s account, preventing him from transferring out the illicit trading profits. Acosta, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of the final judgment which permanently enjoins him from violating Exchange Act Section 10(b) and Rule 10b-5 thereunder by committing or engaging in specified actions or activities relevant to such violations. The final judgment also permanently enjoins him from opening a brokerage account without first providing to the relevant brokerage firm(s) a copy of the Commission’s filed complaint in this matter and final judgment, and requires him to pay a $15,000 civil penalty. The SEC's investigation was conducted by Jack Easton, of the Philadelphia Regional Office, under the supervision of Kingdon Kase and Scott A. Thompson, with the assistance of trial counsel Kara F. Sweet under the supervision of Gregory Bockin.
OCR text (2,056c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26261 / March 6, 2025 Securities and Exchange Commission v. Rey D. Acosta, No. 3:23-cv-00323 (M.D. PA. filed Feb. 24, 2025) SEC Obtains Final Judgment Against Pennsylvania Man for His Fraudulent "Free-Riding" Scheme On March 6, 2025, the Securities and Exchange Commission obtained a final judgment against Rey D. Acosta of Shenandoah, Pennsylvania, who was charged with conducting a fraudulent "free-riding" scheme in which he attempted to profit by purchasing and selling stocks without having sufficient funds to pay for the trading. The SEC’s complaint alleged that, in January 2023, Acosta fraudulently made a series of transfers totaling $1.5 million into his brokerage account from a bank account that he knew lacked sufficient funds to cover the transfers and these transfers were subsequently reversed for insufficient funds. The complaint further alleges that prior to the reversal, Acosta purchased three different stocks for more than $120,000 and sold the stocks for a profit. According to the complaint, after the fraudulent transfers were reversed, the brokerage firm closed Acosta’s account, preventing him from transferring out the illicit trading profits. Acosta, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of the final judgment which permanently enjoins him from violating Exchange Act Section 10(b) and Rule 10b-5 thereunder by committing or engaging in specified actions or activities relevant to such violations. The final judgment also permanently enjoins him from opening a brokerage account without first providing to the relevant brokerage firm(s) a copy of the Commission’s filed complaint in this matter and final judgment, and requires him to pay a $15,000 civil penalty. The SEC's investigation was conducted by Jack Easton, of the Philadelphia Regional Office, under the supervision of Kingdon Kase and Scott A. Thompson, with the assistance of trial counsel Kara F. Sweet under the supervision of Gregory Bockin.

Related documents (2)