SEC Obtains Emergency Relief Freezing Assets and Halting an Alleged Ongoing Investment Advisory Fraud

Litigation Release No. 25241 / October 6, 2021

Securities and Exchange Commission v. Ron K. Harrison., et al., No. 8:21-cv-01610 (C.D. Cal. filed Sept. 30, 2021)

The Securities and Exchange Commission announced today that it has obtained an emergency court order freezing the assets Ron Harrison, of Ladera Ranch, California, for allegedly carrying out an ongoing investment advisory fraud.

According to the SEC's complaint, filed on September 30, 2021 in the United States District Court for the Central District of California, Ron Harrison fraudulently collected over $900,000 in performance and other fees from twenty-two clients since 2016. The complaint alleges that Harrison collected these fees based on purported gains from his option trading in the clients' brokerage accounts when, in fact, almost all of the clients suffered substantial losses from Harrison's trading. The complaint also alleges that Harrison touted to his clients his experience as a Wall Street trader, but misleadingly failed to disclose that FINRA had barred him from associating with any member. The complaint also names Harrison's company, Global Trading Institute, LLC, as a defendant for allegedly participating in Harrison's fraud and names his girlfriend, Irina Parfyonova, as a relief defendant for allegedly receiving from Harrison more than $279,000 in proceeds from the fraud.

On September 30, 2021, the district court granted the SEC's request for a temporary restraining order against Harrison and his company. The court's order freezes the assets of Harrison, Global Trading Institute, and Parfyonova, and orders them to provide an accounting, among other relief. The court set a hearing on the SEC's motion for a preliminary injunction extending the emergency relief through the conclusion of the case for October 14, 2021.

The SEC's investigation was conducted by staff in the SEC's Los Angeles Regional Office and supervised by Robert Conrrad. The SEC's litigation will be led by Kathryn Wanner and Amy Longo.