Tuco Trading, LLC and Douglas G. Frederick

On March 17, 2008, the SEC obtained permanent injunctions and asset freezes, by consent, against Tuco Trading, LLC, and its principal, Douglas G. Frederick. According to the complaint, Tuco operated as an unregistered day-trading firm, providing day-trading capability to more than 250 traders. The SEC also alleged that the defendants inaccurately reported to the traders their equity balances. For more information about the SEC’s action, you can read Litigation Release Nos. 20480 (Mar. 6. 2008) and 20500 (Mar. 18, 2008).

The Court also appointed Thomas F. Lennon as Receiver to marshal assets, prepare an accounting and, propose a distribution of funds to pay for Tuco’s outstanding liabilities and return funds to Tuco’s traders. For the most current information about the Receivership, you can visit the Receiver’s website.