Tradenet Capital Markets Ltd., an Israeli day-trading education firm is accused of violating U.S. federal securities laws in connection with its security-based swap transaction.
The U.S. Securities and Exchange Commission (SEC) alleged that Tradenet sold and offered unregistered security-based swaps to thousands of retail investors. The day trading education firm also allegedly failed to conduct its swap transaction on registered national exchanges. Therefore, it violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
Details of the allegations
According to the SEC Order, Tradenet offered and sold unregistered security-based swaps to more than 5,000 retail investors in the United States from November 2017 and June 2020.
The firm allegedly sold day trading educational packages worth between $500 and $9,000 to retail investors. The packages included books, videos, and access to on-demand and live-streaming sessions with Tradenet representatives. Each package contained a funded trading account, which allowed investors to create a portfolio of securities and to receive possible payouts tied to the performance of the portfolio.
