SEC Accepts Settlement Offer Against Ricardo Goldman
On November 29, 2018, the SEC determined to accept the Offer of Settlement which was submitted by Ricardo Goldman.
A resident of Miami, Florida,Ricardo Goldman was a broker with an unregistered broker-dealer, American Capital Group. From at least November 2010 to August 2015, Ricardo Goldman solicited securities traders through day trading seminars he taught, as well as by offering day trading software and services. Ricardo Goldman established and maintained sub-accounts for traders under a U.S. brokerage account belonging to America Capital Group LTD held at Letsgotrade, Inc., a registered broker-dealer based in Puerto Rico. Ricardo Goldman received transactions based compensation in the form of commissions. Neither American Capital Group nor America Capital Group LTD has ever registered with the SEC in any capacity.
On November 8, 2018, a final judgment was entered by consent against Ricardo Goldman, permanently enjoining him from future violations of Sections 10(b), 15(a)(1), and 15(b)(6)(B) of the Exchange Act and Rule 10b-5.
The SEC’s complaint alleged that Ricardo Goldman provided day traders with margin leverage, which allowed them to trade against the equity of America Capital Group LTD’s pooled master trading account. Ricardo Goldman also provided day traders with equipment, office space and remote access, which resulted in at least $2.5 billion in securities transactions. During the relevant time period, Ricardo Goldman received approximately $6.9 million from 77 investors, which he transferred to America Capital Group LTD’s ChoiceTrade brokerage account.
The brokerage account incurred significant losses as a result of some traders’ trading, but other traders shared in these losses because of Ricardo Goldman’s undisclosed commingling of traders’ funds. Additional losses were caused by Ricardo Goldman’s undisclosed use of traders’ funds for personal expenses. Ricardo Goldman made material misrepresentations and omissions regarding the trading program and his prior disciplinary history, which included permanent antifraud and registration injunctions, and approximately $500,000 in civil penalties, interest and disgorgement, and a broker-dealer bar.
SEC deemed it appropriate and in the public interest to impose the sanctions agreed to in Ricardo Goldman’s offer. Ricardo Goldman is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent, or nationally recognized statistical rating organization; and Pursuant to Section 15(b)(6)(B) of the Exchange Act and he is barred from participating in any offering of a penny stock.
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