SEC v. Aaron O’Brian Freeman

Aaron O’Brian Freeman allegedly conducted a fraudulent “free-riding” scheme in which he bought nearly $900,000 worth of securities without paying for them, according to the SEC. Between at least January 2024 and February 2024, Freeman deposited checks into brokerage accounts from other accounts he knew were closed or lacked sufficient funds, and then sought to immediately trade on or withdraw funds from the brokerage accounts before the recipient broker-dealers discovered that the deposits were fraudulent, according to the SEC. Freeman initiated nearly $3.5 million in unfunded check deposits, made securities purchases totaling $889,087.04 using the immediate credit extended by the broker-dealers, and spent approximately $4,000 in debit card payments on a debit card received from one of the recipient broker-dealers, according to the SEC. Freeman’s scheme involved not only brokerage accounts in his name, but also accounts that he opened in the names of two relatives, including a disabled aunt, according to the SEC.

Summary generated from official Securities and Exchange Commission press release