SEC v. Ronald Pallek, No. LR-26264, Eastern District of Wisconsin (Mar. 11, 2025) — Press Release
raw: Ronald Pallek
Ronald Pallek, No. 2:25-cv-00364 (Mar. 11, 2025)
summary
Ronald Pallek of Illinois defrauded at least 87 investors of over $1.5 million through a fraudulent options trading scheme and has agreed to a consent judgment.
paragraph
Ronald Pallek defrauded at least 87 investors of over $1.5 million by promising to double their money through an Iron Condor options strategy. He faces charges for violating the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. Pallek has entered into a consent judgment to be enjoined from future violations while awaiting a ruling on monetary sanctions.
narrative
Between February 2021 and September 2023, Ronald Pallek of Lakemoor, Illinois, raised over $1.5 million from at least 87 investors by promising to double their returns via an Iron Condor options strategy. The SEC alleges Pallek misrepresented trading risks, provided false account statements, and utilized a Ponzi-like structure to pay early investors. When investors requested fund returns in late 2023, Pallek initially blamed frozen bank accounts before admitting the money was lost to trading. Pallek faces charges for violating the Securities Act, the Securities Exchange Act, and the Investment Advisers Act. He has agreed to a consent judgment to be enjoined from future violations, with monetary sanctions to be determined. Additionally, the SEC coordinated the filing with the U.S. Attorney’s Office, which announced a simultaneous plea agreement with Pallek.
Classified ponzi(confidence 98%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →
Statutes
Parties
HarperExperian Information Solutions Inc
Keywords
palleksecronald palleksecurities exchangeinvestorssecuritiesexchange commissionalleges pallekronaldexchangeallegesfundsmarch securitieseastern wisconsiniron condor
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $1.50M $1.5 million $1M–$10M
Entities 4
- person further violations
- person investors false account statements
- person ronald pallek
- agency Securities and Exchange Commission
Triples 12
- Securities And Exchange Commission filed a complaint against Ronald Pallek of Lakemoor, Illinois
- Ronald Pallek defrauded at least 87 investors in a scheme that raised over $1.5 million
- Ronald Pallek raised funds from investors promising to double their money within a year by investing in an Iron Condor options trading strategy
- Ronald Pallek misrepresented the risks of investing using the Iron Condor strategy
- Ronald Pallek lied to investors that he had sufficient funds to cover any potential trading losses
- Ronald Pallek sent investors false account statements
- Ronald Pallek used some investor funds to make Ponzi-like payments to early investors
- Ronald Pallek falsely told investors that his bank had frozen his accounts
- Ronald Pallek admitted to investors that he had lost the money trading
- Securities And Exchange Commission charges Ronald Pallek 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, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder
- Ronald Pallek agrees to be enjoined from further violations
- U.S. Attorney’s Office for the Eastern District of Wisconsin announced a plea agreement with Ronald Pallek related to the same conduct alleged in the SEC’s complaint
PDF (from attached: complaint)
Text layers
Extracted body text (2,258c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26264 / March 11, 2025 Securities and Exchange Commission v. Ronald Pallek, Civil Action No. 2:25-cv-00364 (E.D. Wis. filed Mar. 10, 2025) SEC Charges Illinois Man in Fraudulent Securities Offering On March 10, 2025, the Securities and Exchange Commission filed a complaint against Ronald Pallek of Lakemoor, Illinois alleging he defrauded at least 87 investors in a scheme that raised over $1.5 million. The SEC’s complaint filed in federal court in the Eastern District of Wisconsin alleges that, between February 2021 and September 2023, Pallek raised funds from investors promising to double their money within a year by investing in an Iron Condor options trading strategy. The complaint further alleges that Pallek misrepresented the risks of investing using the Iron Condor strategy and lied to investors that he had sufficient funds to cover any potential trading losses. The complaint also alleges that Pallek sent investors false account statements and used some investor funds to make Ponzi-like payments to early investors. In the fall of 2023, when some investors requested the return of their funds, the complaint alleges that Pallek falsely told them that his bank had frozen his accounts but later admitted to investors that he had lost the money trading. The SEC’s complaint, charges Pallek 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, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Simultaneously with the filing of the complaint, the SEC submitted a consent to a judgment whereby Pallek agrees to be enjoined from further violations and to a ruling from the court at a later date as to monetary sanctions. The SEC’s investigation was conducted by Scott Tandy and Larry Brannon and supervised by C.J. Kerstetter, of the SEC’s Chicago Regional Office. The SEC’s litigation will be led by Christopher White. The SEC coordinated the filing of these civil charges with the U.S. Attorney’s Office for the Eastern District of Wisconsin, which today announced a plea agreement with Pallek related to the same conduct alleged in the SEC’s complaint.
OCR text (2,258c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26264 / March 11, 2025 Securities and Exchange Commission v. Ronald Pallek, Civil Action No. 2:25-cv-00364 (E.D. Wis. filed Mar. 10, 2025) SEC Charges Illinois Man in Fraudulent Securities Offering On March 10, 2025, the Securities and Exchange Commission filed a complaint against Ronald Pallek of Lakemoor, Illinois alleging he defrauded at least 87 investors in a scheme that raised over $1.5 million. The SEC’s complaint filed in federal court in the Eastern District of Wisconsin alleges that, between February 2021 and September 2023, Pallek raised funds from investors promising to double their money within a year by investing in an Iron Condor options trading strategy. The complaint further alleges that Pallek misrepresented the risks of investing using the Iron Condor strategy and lied to investors that he had sufficient funds to cover any potential trading losses. The complaint also alleges that Pallek sent investors false account statements and used some investor funds to make Ponzi-like payments to early investors. In the fall of 2023, when some investors requested the return of their funds, the complaint alleges that Pallek falsely told them that his bank had frozen his accounts but later admitted to investors that he had lost the money trading. The SEC’s complaint, charges Pallek 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, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Simultaneously with the filing of the complaint, the SEC submitted a consent to a judgment whereby Pallek agrees to be enjoined from further violations and to a ruling from the court at a later date as to monetary sanctions. The SEC’s investigation was conducted by Scott Tandy and Larry Brannon and supervised by C.J. Kerstetter, of the SEC’s Chicago Regional Office. The SEC’s litigation will be led by Christopher White. The SEC coordinated the filing of these civil charges with the U.S. Attorney’s Office for the Eastern District of Wisconsin, which today announced a plea agreement with Pallek related to the same conduct alleged in the SEC’s complaint.