SEC v. Mayur Baviskar (free riding and parking, 2026)

Settled

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In August 2026 the SEC filed a settled action against North Carolina trader Mayur Baviskar, alleging $377,200 of unfunded deposits at nine brokerages from 2019 to 2024 and trades of over $1.4 million, with $6,078.16 of profits withdrawn. He consented to pay $6,078.16 disgorgement, $1,914.41 interest and a $50,000 penalty, subject to court approval.

The record

What was ordered

Civil penalty

$50k

Disgorgement

$6.1k

Prejudgment interest

$1.9k

Total relief

$58k

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 August 26, 2026 (litigation release 26618) a settled complaint filed on August 25, 2026 in the Eastern District of North Carolina.

The SEC alleges that between March 2019 and September 2024 Baviskar initiated $377,200 of unfunded deposits at nine broker-dealers, using the instant credit to trade over $1.4 million of securities, knowingly drew transfers on accounts without funds and placed stop-payment orders on transfers from accounts that did have funds. He withdrew $6,078.16 of profits.

Without admitting the allegations, he consented to a final judgment, subject to court approval, enjoining violations of Section 10(b) and Rule 10b-5, imposing a conduct-based injunction and ordering $6,078.16 disgorgement, $1,914.41 interest and a $50,000 penalty. This library tags the matter as free riding because the conduct is trading on credit with no funds behind it. The record showed the status as judgment, which was still subject to approval.

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. 2026-08-26 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.