A trader who engaged in spoofing during extended trading hours has settled enforcement allegations from the U.S. Securities and Exchange Commission (SEC).
The regulator filed settled charges against a Las Vegas-based trader, Frank Cerisano Jr., for allegedly carrying out a market manipulation scheme over four years, generating more than US$1 million in ill-gotten gains.
In its complaint, the SEC alleged that between May 2021 and April 2025, Cerisano engaged in a spoofing scheme that was carried out during extended hours when market volume tends to be lower than during the normal trading day.
“This made it easier for defendant to move the prices of securities in a direction of his choosing by rapidly placing non-bona fide ‘spoof’ orders on one side of the market, then executing bona fide orders on the opposite side of the market at prices that reflected the artificial price movements he had created,” the regulator said in its complaint.
Additionally, it alleged that the scheme used accounts at multiple broker-dealers, which prevented brokers from detecting the illegal activity.
Without admitting the allegations, Cerisano consented to the entry of a final judgment, which is subject to court approval, that imposed a permanent injunction, ordered him to pay US$1.12 million in disgorgement, plus interest and a civil penalty of $334,701.60. He was also banned from trading for five years.