SEC v. Baris Cabalar, No. LR-26161, Eastern District of New York (Oct. 16, 2024) — Press Release
raw: Baris Cabalar
Baris Cabalar, No. 1:24-cv-07274 (E.D.N.Y. Oct. 16, 2024)
summary
The SEC charged PHX Financial representative Baris Cabalar with fraud and Regulation Best Interest violations for recommending an excessive trading strategy that cost customers over $1 million.
paragraph
Baris Cabalar is charged with violating antifraud provisions and Regulation Best Interest by recommending a high-volume, short-term investment strategy without a reasonable basis for profitability. Between January 2019 and October 2021, the strategy caused eight retail customers to suffer aggregated losses exceeding $1 million. Cabalar and PHX Financial collectively earned over $400,000 in commissions and fees from this excessive trading.
narrative
The SEC filed charges against Baris Cabalar, a registered representative at PHX Financial, Inc., for violating Regulation Best Interest and antifraud provisions. From January 2019 to October 2021, Cabalar recommended a high-volume, short-term investment strategy to eight retail customers that lacked a reasonable basis for profitability. This excessive trading resulted in aggregated customer losses exceeding $1 million, while Cabalar and PHX collected over $400,000 in commissions and fees. The complaint alleges violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. The SEC is seeking permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. The investigation was conducted by the SEC’s New York Regional Office and the Division of Examinations.
Classified broker-dealer-fraud(confidence 100%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
Parties
Securities And Exchange CommissionCabalar
Keywords
cabalarbaris cabalarsecurities exchangeexchange commissionsecuritiesexchangebarissecphxregistered representativeregulation bestbest interestexcessive tradingcustomers withoutwithout reasonable
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $1.00M $1 million $1M–$10M
- $400K $400,000 $100K–$1M
Entities 8
- person alex vasilescu
- person Baris Cabalar
- person civil penalties
- person permanent injunctive relief
- person regulation best interest
- agency Securities and Exchange Commission
- agency the sec's investigation
- agency the sec's litigation
Triples 19
- Securities And Exchange Commission filed charges against Baris Cabalar
- Baris Cabalar recommended a short-term, high-volume investment strategy
- Baris Cabalar recommended a strategy to eight of PHX's retail customers
- customers suffered aggregated losses exceeding $1 million
- Baris Cabalar and PHX received over $400,000 in commissions and fees
- Securities And Exchange Commission filed a complaint in the United States District Court for the Eastern District of New York
- Baris Cabalar violated the antifraud provisions of Section 17(a) of the Securities Act of 1933
- Baris Cabalar violated Section 10(b) of the Securities Exchange Act of 1934
- Baris Cabalar violated Rule 10b-5
- Baris Cabalar violated Regulation Best Interest
- Baris Cabalar violated Exchange Act Rule 15l-1
- complaint seeks permanent injunctive relief
- complaint seeks disgorgement with prejudgment interest
- complaint seeks civil penalties
- Stewart Gilson, Christoper Dunnigan, and Roseann Daniello led the SEC's investigation
- Judith Weinstock and Thomas P. Smith, Jr supervised the SEC's investigation
- Mr. Dunnigan led the SEC's litigation
- Alex Vasilescu supervised the SEC's litigation
- Matthew Chan, Stephen DeBella, Grzegorz Steckiewicz, and Ronald Krietzman conducted the examination that led to Enforcement's investigation
PDF (from attached: complaint)
Text layers
Extracted body text (1,979c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26161 / October 16, 2024 Securities and Exchange Commission v. Baris Cabalar, No. 1:24-cv-07274 (E.D.N.Y. filed Oct. 16, 2024) SEC Charges Registered Representative with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts The Securities and Exchange Commission today filed charges against Baris Cabalar, a registered representative at the broker-dealer PHX Financial, Inc., for recommending a short-term, high-volume investment strategy to customers without a reasonable basis. According to the complaint, from January 2019 to October 2021, Cabalar recommended a strategy to eight of PHX’s retail customers without a reasonable basis to believe that the strategy would be profitable given the costs imposed. As described in the complaint, these customers suffered aggregated losses exceeding $1 million in their PHX brokerage accounts, and Cabalar and PHX together received over $400,000 in commissions and fees from the excessive trading Cabalar recommended. The SEC’s complaint, filed in the United States District Court for the Eastern District of New York, charges Cabalar with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Regulation Best Interest, Exchange Act Rule 15l-1. The complaint seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was led by Stewart Gilson, Christoper Dunnigan, and Roseann Daniello and was supervised by Judith Weinstock and Thomas P. Smith, Jr, all of the New York Regional Office. The SEC’s litigation will be led by Mr. Dunnigan and supervised by Alex Vasilescu. The examination that led to Enforcement’s investigation was conducted by Matthew Chan, Stephen DeBella, Grzegorz Steckiewicz, and Ronald Krietzman of the Division of Examinations.
OCR text (1,979c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26161 / October 16, 2024 Securities and Exchange Commission v. Baris Cabalar, No. 1:24-cv-07274 (E.D.N.Y. filed Oct. 16, 2024) SEC Charges Registered Representative with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts The Securities and Exchange Commission today filed charges against Baris Cabalar, a registered representative at the broker-dealer PHX Financial, Inc., for recommending a short-term, high-volume investment strategy to customers without a reasonable basis. According to the complaint, from January 2019 to October 2021, Cabalar recommended a strategy to eight of PHX’s retail customers without a reasonable basis to believe that the strategy would be profitable given the costs imposed. As described in the complaint, these customers suffered aggregated losses exceeding $1 million in their PHX brokerage accounts, and Cabalar and PHX together received over $400,000 in commissions and fees from the excessive trading Cabalar recommended. The SEC’s complaint, filed in the United States District Court for the Eastern District of New York, charges Cabalar with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as Regulation Best Interest, Exchange Act Rule 15l-1. The complaint seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties. The SEC’s investigation was led by Stewart Gilson, Christoper Dunnigan, and Roseann Daniello and was supervised by Judith Weinstock and Thomas P. Smith, Jr, all of the New York Regional Office. The SEC’s litigation will be led by Mr. Dunnigan and supervised by Alex Vasilescu. The examination that led to Enforcement’s investigation was conducted by Matthew Chan, Stephen DeBella, Grzegorz Steckiewicz, and Ronald Krietzman of the Division of Examinations.