Rey D. Acosta
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26261 / March 6, 2025
Securities and Exchange Commission v. Rey D. Acosta, No. 3:23-cv-00323 (M.D. PA. filed Feb. 24, 2025)
SEC Obtains Final Judgment Against Pennsylvania Man for His Fraudulent "Free-Riding" Scheme
On March 6, 2025, the Securities and Exchange Commission obtained a final judgment against Rey D. Acosta of Shenandoah, Pennsylvania, who was charged with conducting a fraudulent "free-riding" scheme in which he attempted to profit by purchasing and selling stocks without having sufficient funds to pay for the trading.
The SEC’s complaint alleged that, in January 2023, Acosta fraudulently made a series of transfers totaling $1.5 million into his brokerage account from a bank account that he knew lacked sufficient funds to cover the transfers and these transfers were subsequently reversed for insufficient funds. The complaint further alleges that prior to the reversal, Acosta purchased three different stocks for more than $120,000 and sold the stocks for a profit. According to the complaint, after the fraudulent transfers were reversed, the brokerage firm closed Acosta’s account, preventing him from transferring out the illicit trading profits.
Acosta, without admitting or denying the allegations in the SEC’s complaint, consented to the entry of the final judgment which permanently enjoins him from violating Exchange Act Section 10(b) and Rule 10b-5 thereunder by committing or engaging in specified actions or activities relevant to such violations. The final judgment also permanently enjoins him from opening a brokerage account without first providing to the relevant brokerage firm(s) a copy of the Commission’s filed complaint in this matter and final judgment, and requires him to pay a $15,000 civil penalty.
The SEC's investigation was conducted by Jack Easton, of the Philadelphia Regional Office, under the supervision of Kingdon Kase and Scott A. Thompson, with the assistance of trial counsel Kara F. Sweet under the supervision of Gregory Bockin.