U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19299 / July 11, 2005
SEC v. Suheil M. Judeh, Civil Action No. C 04 0322 L (W.D. Wash.).
SEATTLE MAN ORDERED TO PAY OVER $230,000 FOR FRAUDULENT STOCK TRADING USING STOLEN AND FALSE IDENTITIES
The U.S. Securities and Exchange Commission announced today that it has obtained a final judgment against a Seattle day-trader, Suheil M. Judeh, who used stolen and false identities to engage in fraudulent stock trading. The judgment provides that Judeh, age 37, is enjoined from violations of the antifraud provisions of federal securities laws and must pay disgorgement and penalties totaling $234,121.
As alleged in the Commission's complaint, Judeh's scheme operated as follows: During 2002 and 2003, Judeh used stolen and false identities and forged checks to open a series of brokerage accounts (the "nominee accounts"). He then used the nominee accounts and an account he held in his own name to trade securities with himself. Judeh structured the trades so that he gained over $100,000 in trading profits, while the nominee accounts incurred corresponding losses that were ultimately borne by the brokerages where those accounts were opened. Also, Judeh's trades were publicly reported and thus created a false appearance of legitimate market activity in the stocks involved.
The final judgment permanently enjoins Judeh from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment further requires Judeh to pay disgorgement of $114,121, representing his profits from the scheme, and a civil penalty of $120,000.
For more formation, see [link to Lit. Release 18579, Feb. 17, 2004]