SEC v. Corey Ortiz (free riding and parking, 2026)

Judgment entered

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In August 2026 the SEC announced a final consent judgment against Corey Ortiz, who it said recruited people to open loser accounts in the Long Island free-riding scheme. He is liable for $199,710 disgorgement and $19,727 interest, deemed satisfied by criminal restitution, with a five-year account-opening injunction.

The record

What was ordered

Civil penalty

—

Disgorgement

$200k

Prejudgment interest

$19.7k

Total relief

$219k

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 (litigation release 26626) that on August 25, 2026 the Eastern District of New York entered a final consent judgment against Ortiz in the case filed October 31, 2023. The release header carries an earlier date than the judgment, which the record leaves as filed.

The complaint alleged an approximately $2 million scheme using unfunded loser accounts to trade at artificial prices with winner accounts, using at least 600 accounts over four years, with Ortiz's role mainly recruiting people to open loser accounts or give access for a nominal sum. The judgment permanently enjoins him under Section 10(b) and Rule 10b-5, holds him liable for disgorgement of $199,710 and interest of $19,727, deemed satisfied by criminal restitution and forfeiture, and bars him for five years from opening a brokerage account without giving the firm the complaint and judgment. 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. 2026-09-03 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.