On November 7, 2018, the Securities and Exchange Commission charged Florida resident Ricardo H. Goldman for fraudulently operating an unregistered securities day trading firm.
According to the SEC’s complaint, Goldman misled dozens of day traders into thinking they were opening individual online securities trading accounts with Goldman’s broker-dealer, America Capital Group LLC, which was not registered with the SEC. The SEC alleges that between at least November 2010 and August 2015, Goldman raised approximately $6.9 million from traders and then comingled their funds by placing them in a pooled master brokerage account that he controlled. Goldman allegedly concealed the comingling of the funds by giving traders online access to individual sub-accounts within the pooled master account. Goldman allegedly profited by charging traders a commission on their trades. According to the SEC’s complaint, the pooled account ultimately sustained at least $3.6 million in trading loses. Because funds were commingled, traders were forced to share in the overall losses incurred in the master account. The complaint further alleges Goldman made material misrepresentations and omissions to traders regarding his background and disciplinary history which includes antifraud and securities and broker-dealer registration injunctions, a broker-dealer bar, and a state court conviction for grand theft and forgery.
The SEC’s complaint, which was filed in the Southern District of Florida, charges Goldman with violating Sections 10(b), 15(a)(1), and 15(b)(6)(B) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and seeks permanent and conduct-based injunctions, disgorgement of ill-gotten gains with interest, and penalties.
Upon filing of the Commission’s complaint, and without admitting or denying the allegations in the complaint, Goldman consented to the entry of a judgment that permanently enjoins him from violating the above-mentioned provisions of the federal securities laws, imposes a conduct-based injunction, and directs Goldman to comply with the Commission’s Order dated November 19, 2008, In the Matter of Ricardo H. Goldman (Exchange Rel. No. 58976, Admin. Proc. 3-13293). The Judgment also orders Goldman to pay disgorgement of $470,000, prejudgment interest thereon in the amount of $53,497, and a civil penalty in the amount of $320,000.
The SEC’s investigation was conducted by Shelly-Ann A. Springer-Charles and Crystal C. Ivory with the assistance of Wilfredo Fernandez and was supervised by Eric R. Busto.