Ryan N. Cole
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26371 / August 11, 2025
Securities and Exchange Commission v. Ryan N. Cole, No. 25-civ-01038 (E.D. Cal. filed Aug. 11, 2025)
SEC Charges California Resident for Engaging in a Manipulative Options Spoofing Scheme
The Securities and Exchange Commission today filed settled charges against Ryan N. Cole, a resident of Folsom, California, for allegedly conducting a manipulative trading scheme known as spoofing through which he obtained approximately $234,000 in ill-gotten gains.
According to the SEC’s complaint, Cole, while working as a trader for a financial firm, placed fake—or spoof—orders to manipulate the prices of thinly traded options, and then executed different orders at the resulting manipulated prices. Cole’s alleged scheme included placing multiple spoof orders across neighboring options series. To facilitate desired executions across these series, Cole used the complex order book to place multi-leg immediate-or-cancel orders. After his immediate-or-cancel orders were executed, Cole then cancelled his spoof orders. The SEC’s complaint further alleges that Cole took steps to conceal his spoofing scheme from the firm by providing false and misleading responses to questions posed about his trading. Ultimately, Cole was terminated by the firm.
The SEC’s complaint, filed in the Eastern District of California, charges Cole with violating the antifraud provisions of Section 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The complaint also charges Cole with violating Section 9(a)(2) of the Exchange Act. Cole, without admitting or denying the allegations in the SEC’s complaint, has consented to the entry of a final judgment, subject to court approval, imposing permanent injunctive relief for the charged provisions and ordering him to pay disgorgement of $234,803 plus prejudgment interest of $52,656, and a civil penalty of $70,441. The final judgment would also prohibit Cole, for a period of five years, from, directly or indirectly, opening, maintaining or trading in any brokerage account(s) in his name, the names of any immediate family members, the name of any company over which he has any control or the names of any third party individual(s), without providing the relevant broker-dealer(s) a copy of the complaint and final judgment entered against him.
The SEC’s investigation was conducted by Seth Nadler, Andrew McFall, John Marino, and David Bennett of the Enforcement Division’s Market Abuse Unit, under the supervision of Paul Kim and Joseph G. Sansone, Chief of the Market Abuse Unit, and with the assistance of trial counsel Zachary Avallone under the supervision of Christopher Bruckmann. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.