Corey Ortiz
SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26626 / August 3, 2026 Securities and Exchange Commission v. 31, 2023) SEC Obtains Final Consent…
Summary
SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26626 / August 3, 2026 Securities and Exchange Commission v. 31, 2023) SEC Obtains Final Consent Judgment as to Corey Ortiz in Connection with Alleged “Free-Riding” Scheme On August 25, 2026, the United States District Court for the Eastern District of New York entered a final consent judgment as to defendant Corey Ortiz for his role in an alleged $2 million “free-riding” scheme. The SEC’s complaint, filed on October 31, 2023, alleged that Ortiz and three others participated in a fraudulent free-riding scheme whereby they opened and used unfunded brokerage accounts (the loser accounts) to generate trading profits in other brokerage accounts that they also controlled (the winner accounts).
Positives
- SECURITIES AND EXCHANGE COMMISSION Litigation Release No.
- The SEC’s complaint, filed on October 31, 2023, alleged that Ortiz and three others participated in a fraudulent free-riding scheme whereby they opened and used unfunded brokerage accounts (the loser accounts) to generate trading profits in other brokerage accounts that they also controlled (the winner accounts).
- The complaint further alleged that the defendants maintained the loser accounts at a broker that provided an instant deposit credit, which they used to fund trades at artificial prices and repeatedly generate trading profits.
Risks & concerns
- The article may not provide enough evidence to validate every implication.
- Execution, cost, adoption, regulation, or security could change the outcome.
