SEC Drags Broker-Dealer SureTrader to Court for US Operations

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has charged Bahamas-registered broker-dealer, MintBroker International Ltd., known by its tradename SureTrader, for illegally offering services in the United States.

The lawsuit was filed on Monday with a southern district Florida court also named Rico-based Guy Gentile, who is the Founder, owner and Chief Executive of the broker-dealer.

The 22-page long court filing detailed that the platform, which is not registered in the United States, was onboarding and serving US-based traders between March 2016 through to November 2019.

Bypassing the PDT Rules

The broker-dealer marketed its ability to help novice traders and offered pattern day trading, which is heavily regulated by the Financial Industry Regulatory Authority (FINRA). Its website even bragged as a way to avoid ‘the nasty PDT Rule’.

The SEC alleged that SureTrader marketed its services through day trading websites, and solicited thousands of traders based in the United States to open accounts. Furthermore, the broker-dealer nevertheless engaged in ongoing securities relationships with US-based traders, including by holding funds and executing transactions on their behalf.

“At various times during the Relevant Period, up to 80% of SureTrader’s customer base was comprised of U.S. customers,” the court filing noted.

“SureTrader grew from a three-man shop to one with 75 employees, more than 40,000 customer accounts, and assets of more than $10 million. According to Gentile, SureTrader effected transactions in excess of $1 billion on behalf of its customers.”

The SEC has slapped charges on both the company and its owner, seeking injunctive relief, disgorgement of ill-gotten gains with pre-judgment interest and civil penalties.