menu

Homepage > News > SEC accuses the quantitative analyst of front running for $8.5 million

SEC accuses the quantitative analyst of front running for $8.5 million


The US Securities and Exchange Commission (SEC) has accused former quantitative analyst Sergei Polevikov, allegedly earning $8.5 million by lining up his trades with clients served. Despite the fact that he was using the account of his wife, who bears a different name, SEC algorithms revealed the fraudulent activity.

According to Thursday’s SEC press release, Polewikov worked for two major asset management firms and, as a quantitative analyst, had privileged access to their securities orders and transactions. According to the findings of the Commission, he used them for the front running from January 2014 to October 2019. During this time, Polevikov was to make nearly 3,000 shares buy or sell transactions, matching the orders of his employers, earning 8.5 million dollars.

Polewikov usually closed his positions the same day he opened them, taking advantage of the price movement caused by his employers’ large deals. The SEC says Polevikov hid his fraudulent plan by making a transaction on the account of his wife, Maryna Arystawa, who uses a different name, the SEC release said.

Wife’s account didn’t help

What thwarted Polewikov’s plans, revealing his actions, were probably programs used by the US Securities and Exchange Commission.

Although Polewikov allegedly tried to cover up his misdemeanor by using his wife’s account, SEC analysts were able to uncover this deceptive pattern by identifying a consistent pattern of profitable trade in coordination with employers’ transactions, commented Joseph Sansone, head of the SEC’s fraud unit.

Polevikov was charged with violating federal anti-fraud and reporting securities laws. The SEC aims to take away his unfair profits and force him to pay a sufficiently high penalty. The former quantitative analyst will also have to say goodbye to his profession for a long time.

Author: Daniel Hill

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

fxcm broker

FXCM expands its offer with CFDs on French, German and British stocks

The FXCM broker yesterday announced a significant strengthening of the offer on CFDs on stocks ...
Read More
ASIC Australia

The CFD product intervention in Australia will last until 2031

As expected, the Australian financial regulator ASIC proposed an extension of product intervention in the ...
Read More
Weekly news summary

ForexRev: weekly summary [11.10 – 17.10.2021]

Last week's review: Deutsche Bank sued EUR 500m for selling risky FX instruments; ASIC is ...
Read More
tradingview has a capitalization of around 3 billion

TradingView has raised funding of $298 million

TradingView, one of the world's most popular charting platforms for investors and traders, reported raising ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top