Tradenet Capital Markets Settles Charges with SEC with $130,000 Fine

The Securities and Exchange Commission (SEC) has hit Tradenet, a private company headquartered in Israel that offered and sold a variety of ”Day Trading Education Packages” to people, with $130,000 fine and a cease-and-desist order.

The charges were that from November 2017 until June 2020, Tradenet offered and sold security-based swaps to U.S. retail investors without an effective registration statement with the Commission and without effecting those transactions on a registered national securities exchange.

The order further explains that the company violated Section 5(e) of the Securities Act by offering and selling those security-based swaps to U.S. persons who were not eligible contract participants without an effective registration statement.

In addition, Tradenet violated Section 6(l) of the Exchange Act by effecting transactions with U.S. retail investors in security-based swaps that were not effected on a registered national securities exchange.

According to the SEC’s order, Tradenet should cease and desist from committing or causing any violations and any future violations of Section 5(e) of the Securities Act and Section 6(l) of the Exchange Act. And the company shall pay a civil money penalty in the amount of $130,000 within five days of the entry of this Order,

Without admitting or denying the findings in the order, Tradenet consented to the order above.