SEC Enters Cease and Desist Order Against Potamus Trading and Eric J. Pritchett
From the Desk of Jim Eccleston at Eccleston Law LLC:
The U.S. Securities and Exchange Commission (“SEC”) issued a cease and desist order against Potamus Trading LLC and its former CEO, Eric J. Pritchett. According to the SEC, Potamus and Pritchett “portrayed the firm as filling its clients’ orders on a principal basis by trading from its own inventory of securities or risking its capital in the market.” However, the SEC said that the firm “filled the vast majority of its clients’ orders by engaging in net trading” and “rarely traded from inventory or risked its capital[.]” The SEC alleged that this conduct took place between September 2013 and March 2017.
The SEC alleged that when Potamus received orders from clients, the firm frequently would obtain executions on its own account before attempting to fill the client’s order. If Potamus could not obtain an execution for its own account, Potamus would cancel the client’s order.
According to the SEC, Potamus and Pritchett willfully violated sections 17(a)(2) and 17(a)(3) of the Securities Act.
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Related Attorneys: James J. Eccleston
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