SEC v. Tyrone Johnny Lacy, Jr., No. LR-26004, Middle District of Florida (May 13, 2024) — Press Release
raw: Tyrone Johnny Lacy, Jr.
Tyrone Johnny Lacy, Jr., No. 8:24-cv-01145 (May 13, 2024)
summary
The SEC charged Tyrone Johnny Lacy, Jr. for orchestrating a fraudulent 'free-riding' scheme using falsified applications to purchase $331,700 in securities.
paragraph
Tyrone Johnny Lacy, Jr. is charged with violating Section 10(b) of the Securities Exchange Act and Rule 10b-5 for a fraudulent scheme involving $331,700 in securities purchases. Between October 1 and October 26, 2022, Lacy used falsified brokerage applications and sham deposits to induce broker-dealers to provide unauthorized instant buying power. The SEC is seeking permanent injunctive relief, civil penalties, and the disgorgement of ill-gotten gains plus interest.
narrative
The Securities and Exchange Commission has charged 25-year-old Tyrone Johnny Lacy, Jr. of Florida with conducting a fraudulent 'free-riding' scheme. Between October 1 and October 26, 2022, Lacy allegedly used falsified brokerage account applications and sham deposits to secure instant buying power from two broker-dealers. He used this credit to purchase approximately $331,700 in securities before his fraudulent deposits were reversed due to insufficient funds. During the scheme, Lacy withdrew roughly $1,600 in trading profits and left one broker-dealer with a loss of approximately $1,500. The SEC's complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The commission is seeking permanent injunctive relief, civil penalties, and the disgorgement of ill-gotten gains plus prejudgment interest.
Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Parties
Securities and Exchange CommissionTyrone Johnny Lacy, Jr.
Keywords
lacysecuritiestyrone johnnyjohnny lacysecurities exchangesecexchange commissiontyronejohnnyexchangefraudulent free-ridingfree-riding schemebank accountspurchase securitiessecurities lacy
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 4
- $332K $331,700 $100K–$1M
- $300K $300,000 $100K–$1M
- $2K $1,600 <$10K
- $2K $1,500 <$10K
Entities 1
- agency Securities and Exchange Commission
Triples 10
- Securities And Exchange Commission Charged Tyrone Johnny Lacy, Jr. Of Sefner, Florida With Conducting a Fraudulent Free-Riding Scheme
- Tyrone Johnny Lacy, Jr. Used a Falsified Brokerage Account Application And Sham Deposits From Bank Accounts With Minimal Funds To Induce Two Broker-Dealers To Provide Instant Buying Power Credit
- Tyrone Johnny Lacy, Jr. Purchased Approximately $331,700 In Securities Using The Credit Extended By The Broker-Dealers
- Tyrone Johnny Lacy, Jr. Withdrew Approximately $1,600 In Trading Profits
- Tyrone Johnny Lacy, Jr. Left One Broker-Dealer With a Loss Of Approximately $1,500
- Securities And Exchange Commission Filed a Complaint In The United States District Court For The Middle District Of Florida
- Securities And Exchange Commission Charges Tyrone Johnny Lacy, Jr. With Violating The Anti-Fraud Provisions Of Section 10(b) Of The Securities Exchange Act Of 1934 And Rule 10b-5 Thereunder
- Securities And Exchange Commission Seeks Permanent Injunctive Relief, a Conduct-Based Injunction, And Civil Penalties Against Tyrone Johnny Lacy, Jr., As Well As Disgorgement Of Ill-Gotten Gains Plus Prejudgment Interest
- Securities And Exchange Commission Conducted An Investigation By Jason Spitalnick And Supervised By Marc Ricchiute, Nicholas Heinke, And Jason Burt, All Of The Denver Regional Office
- Litigation Will Be Handled By Mr. Spitalnick And Sharan Lieberman And Supervised By Gregory Kasper, Mr. Heinke, And Mr. Burt
PDF (from attached: complaint)
Text layers
Extracted body text (1,972c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26004 / May 13, 2024 Securities and Exchange Commission v. Tyrone Johnny Lacy, Jr., Civil Action No. 8:24-cv-01145 (M.D. Fl. filed May 13, 2024) SEC Charges Florida Man in Fraudulent “Free-Riding” Scheme The Securities and Exchange Commission announced today that it charged 25-year-old Tyrone Johnny Lacy, Jr. (“Lacy”) of Sefner, Florida with conducting a fraudulent “free-riding” scheme in which he took advantage of credits offered by certain broker-dealers to buy over $300,000 in securities without having funds to pay for them. The SEC’s complaint alleges that, from at least October 1, 2022 to October 26, 2022, Lacy used a falsified brokerage account application and sham deposits from bank accounts with minimal funds to induce two broker-dealers to provide “instant buying power” credit allowing Lacy to purchase securities. According to the complaint, before Lacy’s fraudulent deposits were reversed due to insufficient funds in his bank accounts, he used the credit extended to him by the broker-dealers to purchase approximately $331,700 in securities. Lacy allegedly withdrew approximately $1,600 in trading profits and left one broker-dealer with a loss of approximately $1,500. The SEC’s complaint, filed in the United States District Court for the Middle District of Florida, charges Lacy with violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctive relief, a conduct-based injunction, and civil penalties against Lacy, as well as disgorgement of ill-gotten gains plus prejudgment interest. The SEC’s investigation was conducted by Jason Spitalnick and supervised by Marc Ricchiute, Nicholas Heinke, and Jason Burt, all of the Denver Regional Office. The litigation will be handled by Mr. Spitalnick and Sharan Lieberman and supervised by Gregory Kasper, Mr. Heinke, and Mr. Burt. SEC Complaint
OCR text (1,972c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26004 / May 13, 2024 Securities and Exchange Commission v. Tyrone Johnny Lacy, Jr., Civil Action No. 8:24-cv-01145 (M.D. Fl. filed May 13, 2024) SEC Charges Florida Man in Fraudulent “Free-Riding” Scheme The Securities and Exchange Commission announced today that it charged 25-year-old Tyrone Johnny Lacy, Jr. (“Lacy”) of Sefner, Florida with conducting a fraudulent “free-riding” scheme in which he took advantage of credits offered by certain broker-dealers to buy over $300,000 in securities without having funds to pay for them. The SEC’s complaint alleges that, from at least October 1, 2022 to October 26, 2022, Lacy used a falsified brokerage account application and sham deposits from bank accounts with minimal funds to induce two broker-dealers to provide “instant buying power” credit allowing Lacy to purchase securities. According to the complaint, before Lacy’s fraudulent deposits were reversed due to insufficient funds in his bank accounts, he used the credit extended to him by the broker-dealers to purchase approximately $331,700 in securities. Lacy allegedly withdrew approximately $1,600 in trading profits and left one broker-dealer with a loss of approximately $1,500. The SEC’s complaint, filed in the United States District Court for the Middle District of Florida, charges Lacy with violating the anti-fraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctive relief, a conduct-based injunction, and civil penalties against Lacy, as well as disgorgement of ill-gotten gains plus prejudgment interest. The SEC’s investigation was conducted by Jason Spitalnick and supervised by Marc Ricchiute, Nicholas Heinke, and Jason Burt, all of the Denver Regional Office. The litigation will be handled by Mr. Spitalnick and Sharan Lieberman and supervised by Gregory Kasper, Mr. Heinke, and Mr. Burt. SEC Complaint