SEC Accused Two Traders of Illegal Scheme on More Than $700K
The US Securities and Exchange Commission filed a complaint against two traders who received over $700,000 using a flush trading scheme.
According to SEC, Defendants Suyun Gu and Yeon Lee took advantage of different trading commission schedules offered by different retail brokers and exchanges to obtain arbitrage during flush trading.
Traders Suyun Gu and Yeon Lee, trading between sites that offer discounts to market makers and do not charge market taker fees, have received over $1.5 million in rebates through the flush trading scheme.
They were also able to keep almost half of the discounts as profit. The commission estimated that Gu and Li made a profit of $668,671 and $51,334, respectively, between February and April 2021.
Earlier the US Securities and Exchange Commission (SEC) accused Rivetz of an illegal offering of securities worth approximately $18 million between July and September 2017 from more than 7,200 investors.