Broker Emil Botvinnik to pay $1.5 million fraud case brought by SEC

The US court ordered Emil Botvinnik to pay over $1 million to pay on fraud charges brought by the Securities and Exchange Commission.

The regulator charged the former Windsor Street Capital, L.P, representative on 7 September 2018 with defrauding five retail customers. Botvinnik recommended frequent, short-term trades which generated large commissions for him but were almost guaranteed to lose money for his customers.


Botvinnik did not admit or deny the allegations the SEC made but consented to the final judgment. He was ordered to pay civil penalty of $160,000, disgorgement of $1,140,996.48, and $208,155.86 in prejudgment interest.

The official announcement stated that the SEC may suggest a plan to distribute any funds received from Botvinnik to harmed investors.

Botvinnik was also barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent or nationally recognized statistical rating organization.

The SEC announced recently in an official press release that a sales agent based at 1 Global Capital, LLC, Roy Y. Gagaza, was charged due to substantial links being found concerning the trading of unregistered securities of 1 Global.

Earlier in May, the SEC awarded a whistleblower with $28 million for providing information and assistance significant to successful SEC enforcement action.

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