SEC v. Christopher Flagg, Daquan Lloyd and Travis Treusch (free riding and parking, 2026)

Judgment entered

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In April 2026 the SEC announced final consent judgments against Christopher Flagg, Daquan Lloyd and Travis Treusch in the Long Island free-riding case. Together they are liable for $482,440 disgorgement and $47,654.75 interest, deemed satisfied by criminal restitution, with conduct injunctions of five years for Flagg and Lloyd and three for Treusch.

The record

What was ordered

Civil penalty

—

Disgorgement

$482k

Prejudgment interest

$47.7k

Total relief

$530k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced on April 30, 2026 (litigation release 26545) that on April 27, 2026 the Eastern District of New York entered final consent judgments against Flagg, Lloyd and Treusch.

The complaints alleged an approximately $2 million scheme in which unfunded loser accounts at a broker giving instant deposit credit traded at artificial prices with winner accounts the defendants controlled, using at least 600 accounts over four years. Flagg was charged as a principal; Lloyd and Treusch with aiding and abetting by opening loser accounts and recruiting others. Partial judgments had been entered in 2024 and 2025.

The final judgments set disgorgement and interest, each deemed satisfied by criminal restitution and forfeiture: Flagg $56,390 and $5,570; Lloyd $376,050 and $37,145.75; Treusch $50,000 and $4,939, with the earlier injunctions continuing for five years for Flagg and Lloyd and three for Treusch. The record showed only Flagg's disgorgement. This library tags the matter as free riding and matched orders.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with 2 techniques in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Free riding and parking — see how it works, what statute it engages, and every other action tagged the same way.
• Matched orders — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2026-04-30 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 4 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.