The Securities and Exchange Commission (SEC) obtained a verdict against a Ukrainian firm and two individuals involved in manipulative trading schemes.
On Monday, a jury in New York federal court found Avalon FA Ltd, its owner Nathan Fayyer, and Sergey Pustelnik, who owns a controlling interest in the trading firm, guilty of violating securities laws.
SEC evidence proved the defendants accumulated millions of ill-gotten profits
During the trial, the SEC presented evidence proving that the defendants generated more than $25 million in illegal profits through manipulative trading schemes including layering and cross-market manipulation.
According the securities regulator, layering is a trading practice that involves placing and cancelling orders to trick others into buying or selling stocks at artificial prices.
On the other hand, cross-market manipulation involves buying or selling stocks to artificially affect option prices.
The SEC also presented evidence that Pustelnik concealed his controlling interest in Avalon while inserting himself as a registered representative at Lek Securities to facilitate trading for the Ukrainian firm. Lek Securities is brokerage firm based in New York.
