SEC charges money manager with fraud

Ronald Feldstein used free-riding scheme to defraud brokerage firms

The Securities and Exchange Commission (SEC) continues to make good on its promise to crack down on fraud in the financial sector.

Earlier this week, the commission charged a money manager Ronald Feldstein with defrauding investors and brokerage firms. Using a free-riding scheme—which happens when customers buy or sell securities in their brokerage accounts without having the money or shares to actually pay for them—Feldstein caused more than $2 million in losses for the three brokerage firms he defrauded. The SEC claims Feldstein also bilked investors out of nearly a half-million dollars and used the money to fund an extravagant lifestyle, including a luxury car and summer vacations.


Cathleen Flahardy

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