sec-litreleases litigation_release 64 KB 1,689 chars

SEC v. Suheil M. Judeh, No. LR-18579, Western District of Washington — Press Release

raw: Suheil M. Judeh

Suheil M. Judeh, No. LR-18579

Caption: SEC v. Suheil M. Judeh

summary

Seattle day-trader Suheil M. Judeh committed securities fraud by using stolen identities and forged checks to open nominee brokerage accounts, orchestrating round-trip trades to profit $95,000 while shifting losses to brokerages, misleading markets, and violating Sections 17(a), 10(b), and Rule 10b-5.

paragraph

The U.S. Securities and Exchange Commission charged Suheil M. Judeh with securities fraud for manipulating trades through brokerage accounts opened with stolen identities and forged checks. Judeh executed round-trip transactions between his personal account and nominee accounts, ensuring his account gained approximately $95,000 while the nominee accounts incurred losses absorbed by brokerages, not the identity theft victims. The SEC alleges violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5, and seeks injunctive relief, disgorgement of ill-gotten gains, and civil penalties.

narrative

Seattle day-trader Suheil M. Judeh orchestrated a securities fraud scheme between May 2002 and July 2003 by opening multiple brokerage accounts using stolen identities and forged checks. He then engaged in round-trip trades between these fraudulent 'nominee' accounts and his own legitimate account, structuring transactions so that his account consistently profited approximately $95,000 while the nominee accounts incurred losses that were absorbed by the brokerages—not the individuals whose identities were stolen. Judeh never intended to pay for the losses in the nominee accounts, making his offers to buy and sell securities inherently fraudulent. His trades were publicly reported, creating a false appearance of legitimate market activity and misleading other traders. The U.S. Securities and Exchange Commission charged him with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. The SEC is seeking a court order to enjoin Judeh from future violations, require him to disgorge his $95,000 in illicit profits, and pay civil money penalties. The scheme exploited both identity theft and market transparency to conceal fraud and generate unlawful gains.

Enriched metadata

Scheme: unregistered-securities (100%)
Court: Western District of Washington
Victim loss: $95,000
Entity: Suheil M. Judeh

Classified unregistered-securities(confidence 100%). EDGAR detection: forms Form D/S-1· recall 41% / precision 30%. detection rule →

Extracted insights

Dollar amounts 1

$95K $95,000 $10K–$100K

Entities 2

organization Securities and Exchange Commission
person Suheil M. Judeh

Triples 3

U.S. Securities and Exchange Commission filed an action in federal court charging Suheil M. Judeh with fraud in violation of the federal securities laws
Commission charges Suheil M. Judeh with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder
Commission seeks an order enjoining Judeh from future violations, requiring him to disgorge ill-gotten gains, and pay civil money penalties

View original SEC litigation releasesec.gov

Extracted body text (1,689c)

The U.S. Securities and Exchange Commission announced today that it has filed an action in federal court charging a Seattle day-trader, Suheil M. Judeh, with fraud in violation of the federal securities laws. The Commission's Complaint charges Judeh with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission seeks an order enjoining Judeh from future violations of these provisions, requiring him to disgorge his ill-gotten gains, and requiring him to pay civil money penalties. The Complaint alleges that Judeh opened a series of brokerage accounts using stolen and false identities and forged checks. Judeh used these accounts to buy and sell securities with himself, through another brokerage account he held in his own name. Judeh structured the trades so that the account in his name consistently made money, while the accounts under false or stolen identities (the "nominee accounts") incurred losses. Because Judeh had opened the nominee accounts using forged checks, the losses were incurred by the brokerages, and not by the individuals whose identities were stolen. Judeh's offers to buy and sell securities through the nominee accounts were fraudulent because he never intended to pay for the trading losses he accumulated in the nominee accounts. Moreover, because Judeh's trades were publicly reported, they gave the false appearance of legitimate market activity to other traders in those securities. Judeh's illegal trading scheme, which ran from at least May through June 2002 and March through July 2003, netted profits of approximately $95,000. SEC Complaint in this matter

OCR text (1,689c · plain-text · 99% conf)