Craig A. Karlis, et al.


Litigation Release No. 23088 / September 19, 2014

Securities and Exchange Commission v. Craig A. Karlis, et al., Civil Action No. No. 1:10-cr-10319

Securities and Exchange Commission v. Boston Trading and Research, LLC, et al. , Civil Action No. 1:10-cv-11841

Former Owner of a Massachusetts-Based Trading Company Sentenced to Nine Years in Prison

The Securities and Exchange Commission announced today that on September 16, 2014, the former owner of Massachusetts-based Boston Trading and Research, LLC (BTR), was sentenced to nine years in prison after pleading guilty to charges that he and his business partner defrauded more than 700 investors out of more than $30 million.

Craig A. Karlis, 54, of Hopkinton, MA, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to nine years in prison, three years of supervised release, and ordered to pay $4,378,306 in restitution to the fraud victims. In March 2014, Karlis pleaded guilty to nine counts of wire fraud, among other charges.

Karlis' business partner, Ahmet Devrim Akyil, was also charged, but according to a September 16, 2014 press release issued by the United States Attorney's Office for the District of Massachusetts (USAO), Akyil remains a fugitive and is believed to be in his native Turkey. The USAO unsealed an indictment charging Karlis and Akyil with criminal violations on October 28, 2010.

Also on October 28, 2010, the Commission filed a civil injunctive action in federal district court in Massachusetts against BTR, and its principals Ahmet Devrim Akyil and Craig Karlis for fraudulently raising millions of dollars from investors in a purported foreign currency (Forex) trading venture. Among other things, the Commission alleges that the defendants misappropriated some investor funds and lost the vast majority of remaining investor funds through Forex trading activity after promising investors that most of their funds were protected from such trading losses.

According to the Complaint, BTR collapsed in September 2008 due to significant losses accrued as a result of concealed trading far past the stop loss limits promised to investors. Ultimately, BTR distributed the remaining funds, which accounted for only approximately 10% of account balances, to its investors.

The Commission's complaint, which is pending, alleges that BTR, Akyil, and Karlis violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission seeks the entry of a permanent injunction, disgorgement of ill-gotten gains plus pre-judgment interest, and the imposition of civil monetary penalties against BTR, Akyil, and Karlis.

For further information, see Litigation Release Nos. 21712 (October 28, 2010) (Complaint) and 22939 (March 12, 2014).


Last Reviewed or Updated: June 27, 2023