Partial Settlement Reached Between SEC and Trader Involved in $3.6 M Front-Running Scheme

The United States Securities and Exchange Commission has reached a partial agreement with Sean Wygovsky. Wygovsky is facing fraud charges in connection to a front-running scheme.

A letter submitted by the SEC at the New York Southern District Court explains that the Commission and Defendant Sean Wygovsky have reached a partial settlement of the Commission's claim.

The proposed partial Judgment enjoins Mr. Wygovsky from committing additional violations of the federal securities laws that the Commission charged him with violating, but leaves for later resolution the Commission's claims for monetary relief.

According to the SEC's complaint, from approximately January 2015 through at least April 2021, Wygovsky repeatedly traded in his family members' accounts held at brokerage firms in the United States ahead of large trades that were executed on the same days in the accounts of his employer's advisory clients.

On over 600 occasions, Wygovsky allegedly bought or sold a stock for one his relatives' accounts either before the client accounts began executing a large order for the same stock on the same side of the market, or during the time period when tranches of such a large order were being executed. Then, typically before the client accounts completed their executions, Wygovsky allegedly closed out the just-established positions in his relatives' accounts, nearly always at a profit.

Wygovsky committed the scheme in Wygovsky's family accounts and raked in more than $3.6million in illicit profits.

Source: rawnews.com