Litigation Release No. 25096 / May 21, 2021
Securities and Exchange Commission v. Emil Botvinnik, No. 1:18-cv-08182 (S.D.N.Y. filed September 7, 2018)
On May 20, 2021, the U.S. District Court for the Southern District of New York entered a final consent judgment against a New York-based broker who was previously charged by the SEC with defrauding retail customers.
On September 7, 2018, the SEC charged Emil Botvinnik, a former registered representative associated with broker-dealer Windsor Street Capital, L.P. with defrauding five retail customers by recommending frequent, short-term trades which generated large commissions for Botvinnik but were almost guaranteed to lose money for his customers.
Without admitting or denying the allegations of the SEC’s complaint, Botvinnik consented to the entry of a final judgment enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and ordering him to pay a civil penalty of $160,000, disgorgement of $1,140,996.48, and $208,155.86 in prejudgment interest. The judgment provides that the Commission may propose a plan to distribute any funds received from Botvinnik to harmed investors. Botvinnik further agreed to the entry of a Commission order issued today barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.
The SEC’s litigation was conducted by Gregory Bockin, Samantha Williams, Jacqueline O’Reilly, and Yael Berger, and supervised by Stephan Schlegelmilch and Stacy Bogert.