So here's a little story about a man named Peter Beck. Once upon a time, he ran a day-trading operation with 5,000 traders in places like China, Nicaragua, Romania and, worst of all, Canada. And he used that network to manipulate markets, regulators say; at the very least, he knew his charges in 30 countries were doing so, it is alleged.
The SEC investigation found that from January 2007 to June 2010, Biremis provided access to traders who repeatedly engaged in manipulative activity known as "layering," according to the agency's complaint….
Messrs. Beck and Kim were aware that Swift's traders were engaging in layering, the SEC said, citing a number of emails. In July 2008 a broker-dealer complained in an email to Mr. Kim that traders associated with Biremis would artificially run up a stock and "then short it in the DarkPool," the SEC said.
Well, would-be evil doers of Wall Street (or Canada), take heed: Now Messrs. Beck and Kim have been fined $250,000 apiece and barred from participating in U.S. markets. Worse still, they were forced to neither admit or deny any wrongdoing.
The lesson is, undoubtedly, clear: If you run giant multi-national day-trading operations from Toronto that goes on layering for three-and-a-half years, the SEC will eventually catch up with you. Two-and-a-half years later, probably. Six months after FINRA gets you.
Day-Trading Titan Fined [WSJ]