SEC v. Tyrone Johnny Lacy, Jr. (free riding and parking, 2024)

Judgment entered

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In May 2024 the SEC sued Tyrone Johnny Lacy Jr. in the Middle District of Florida over an alleged free-riding scheme that used a falsified brokerage application and sham deposits to obtain buying power. Lacy did not respond, and on October 2, 2025 the court entered a final default judgment with an injunction, $1,699.57 in disgorgement, $343.16 in interest and a $25,000 penalty.

The record

What was ordered

Civil penalty

$25k

Disgorgement

$1.7k

Prejudgment interest

$343

Total relief

$27k

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 May 13, 2024 (litigation release 26004) a complaint in the Middle District of Florida.

The SEC alleges that from at least October 1 to 26, 2022 Lacy used a falsified brokerage account application and sham deposits from bank accounts with minimal funds to induce two broker-dealers to give instant buying power credit, with which he bought about $331,700 of securities before the deposits reversed. He allegedly withdrew about $1,600 of profits and left one broker-dealer with a loss of about $1,500. The complaint charged him under Section 10(b) and Rule 10b-5 and asked for injunctions, a conduct-based injunction, penalties and disgorgement.

This library tags the matter as free riding because the conduct is buying on credit with no funds. The case was pending at the date of the release.

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.

Outcome. The court's order of October 2, 2025 (Document 20 on the docket, case 8:24-cv-01145) grants the SEC's motion for a final default judgment. The docket shows service on January 7, 2025, a missed answer deadline, and a clerk's default entered in February 2025. Because he defaulted, the order treats the complaint's allegations as admitted and finds he committed the violations alleged. The judgment permanently enjoins him from violating Section 10(b) and Rule 10b-5 in the ways described, bars him from trading in any brokerage account that lacks settled cash covering the trade, and requires him to give any new brokerage firm a copy of the complaint and judgment. It orders disgorgement of $1,699.57, prejudgment interest of $343.16 and a civil penalty of $25,000 (total $27,042.73). The finding rests on default, not on a trial.

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. 2024-05-13 Litigation release published
2. 2025-10-02 Final default judgment entered against Tyrone Johnny Lacy, Jr.

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
• Order and final default judgment (M.D. Fla., Doc. 20), via CourtListener

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.