SEC v. Cyrus P. Naderi (free riding and parking, 2025)

Judgment entered

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In November 2025 the SEC announced a consent final judgment against Texas trader Cyrus Naderi, who it said made at least $565,000 of unfunded deposits at four brokerages, trading over $22.4 million of securities and costing three firms at least $65,770. He pays a $40,000 penalty and accepted conduct injunctions.

The record

What was ordered

Civil penalty

$40k

Disgorgement

—

Prejudgment interest

—

Total relief

$40k

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 November 18, 2025 (litigation release 26418) that on October 7, 2025 the Southern District of Texas entered a final judgment against Naderi.

The complaint alleged that from April 2021 to March 2024 he initiated at least $565,000 of unfunded deposits into accounts at four broker-dealers, executed several hundred trades worth more than $22.4 million on instant credit, and caused three firms to lose at least $65,770; the deposits were reversed or stopped by his stop-payment orders. Without admitting or denying, he consented to a permanent injunction under Section 10(b) and Rule 10b-5, conduct-based injunctions and a $40,000 civil penalty. This library tags the matter as free riding because the conduct is trading on credit with no funds behind it.

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 one technique 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.

Timeline

1. 2025-11-18 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.

Related actions

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

Record added September 10, 2026. submit a correction.