Deyonte Jahtori Anthony
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25816 / August 28, 2023
Securities and Exchange Commission v. Deyonte Jahtori Anthony, Civil Action No. 1:23-cv-00726 (M.D.N.C. filed Aug. 25, 2023)
SEC Charges North Carolina Man in Fraudulent "Free-Riding" Scheme
The Securities and Exchange Commission on August 25, 2023, charged 23-year-old Deyonte Jahtori Anthony ("Anthony"), of Concord, North Carolina, with conducting a fraudulent "free-riding" scheme in which he bought nearly $200,000 in securities without paying for them.
The SEC's complaint alleges that, between July 1 and 6, 2022, Anthony opened a new brokerage account using a fraudulent application on which he overstated his personal income and then made $1 million in bogus deposits from his bank account, which held only nine cents at the time. The complaint also states that, before Anthony's deposits reversed for insufficient funds in his bank account, he used "immediate access" credit extended to him by his broker-dealer to purchase $199,956.65 in securities. According to the complaint, Anthony's broker-dealer discovered the scheme before Anthony could make any profits, froze his account, and liquidated his holdings.
The SEC's complaint, filed in the United States District Court for the Middle District of North Carolina, charges Anthony with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the SEC's complaint, Anthony has consented to a judgment, which, subject to court approval, would permanently enjoin him from violating the charged provisions, impose injunctions on his future brokerage activities, and impose a civil penalty in an amount to be determined at a later date by the court upon motion of the Commission.
The SEC's investigation was conducted by Brian M. Basinger and supervised by Stephen E. Donahue and Justin C. Jeffries, all of the Atlanta Regional Office. The litigation will be led by Edward G. Sullivan and supervised by M. Graham Loomis.
Last Reviewed or Updated: Aug. 28, 2023