The SEC has filed a settled enforcement action against Las Vegas resident Frank M. Cerisano Jr., alleging that he operated a four-year stock-manipulation scheme based on spoofing. According to the Commission, Cerisano repeatedly placed orders he did not intend to execute in order to move stock prices, traded on the opposite side of the market in separate brokerage accounts, and then canceled the deceptive orders. The SEC says the strategy generated approximately $1.116 million in ill-gotten gains between May 2021 and April 2025. :chatgpt-content-reference{index="0"}
U.S. Securities and Exchange Commission (SEC)
Official Release: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26606
NEWS:
The SEC filed its complaint against Frank M. Cerisano Jr. on August 10, 2026 in the U.S. District Court for the District of Nevada. The complaint alleges that Cerisano used a classic spoofing pattern: he rapidly entered a series of non-bona fide orders on one side of the market to create artificial buying or selling pressure, while simultaneously placing genuine orders on the opposite side through another brokerage account. Once his real trades executed at prices allegedly influenced by the spoof orders, the deceptive orders were quickly canceled. The SEC says this conduct continued from at least May 2021 through April 2025 and produced approximately $1,115,672 in gains. :chatgpt-content-reference{index="1"}
A particularly notable part of the case is what allegedly happened after a broker-dealer detected the activity. According to the SEC, one brokerage firm warned Cerisano to stop the apparently manipulative trading and ultimately closed his account. The complaint alleges that he then moved to multiple accounts at other broker-dealers and continued using substantially the same strategy. That account-to-account migration makes the case relevant not only as a market-manipulation matter, but also as an example of how surveillance alerts at one financial institution may fail to end misconduct if activity migrates elsewhere. :chatgpt-content-reference{index="2"}
Cerisano agreed to resolve the SEC action without admitting the allegations, subject to court approval. The proposed judgment would require him to pay $1,115,672 in disgorgement, $26,472.82 in prejudgment interest and a $334,701.60 civil penalty. It would also impose a five-year condition requiring him to provide affected broker-dealers with copies of the SEC complaint and judgment before opening, maintaining or trading in brokerage accounts held in his own name, certain family-member names, controlled companies or third-party names. :chatgpt-content-reference{index="3"}
KEY POINTS:
- SEC Litigation Release No. 26606 was issued on August 10, 2026. :chatgpt-content-reference{index="4"}
- The SEC alleges that Cerisano conducted the spoofing scheme from at least May 2021 through April 2025. :chatgpt-content-reference{index="5"}
- The strategy allegedly involved non-bona fide orders in one account and genuine opposite-side trades in another account.
- The SEC calculates approximately $1,115,672 in alleged ill-gotten gains. :chatgpt-content-reference{index="6"}
- After one broker-dealer warned Cerisano and closed his account, the SEC alleges he continued the strategy through multiple accounts at other firms. :chatgpt-content-reference{index="7"}
- The proposed settlement includes disgorgement, prejudgment interest, a $334,701.60 civil penalty and a five-year brokerage-account disclosure restriction. :chatgpt-content-reference{index="8"}