Last Updated: October 6, 2021
INVESTORS: The SEC has alleged that Ron K. Harrison of Global Trading Institute, LLC has fraudulently collected over $900,000 in performance and other fees from twenty-two clients since 2016. If you have invested with Ron K. Harrison of Global Trading Institute, LLC contact us to discuss your options.
Additionally, the complaint states that Harrison highlighted to his clients his experience as a Wall Street trader while failing to disclose that FINRA had barred him from associating with any member.
Sonn Law Group is investigating these claims and wants to hear from clients of Ron K. Harrison and Global Trading Institute, LLC to discuss potential opinions for recovering financial losses.
Ron K. Harrison / Global Trading Institute, LLC: Allegations Made in the SEC Complaint
5. Harrison, an Orange County based unregistered investment adviser and his companies Global Trading Institute, LLC (“GTI”) and the now defunct Trading Advisement Program, LLC (“TAP”) have been conducting an ongoing investment advisory fraud since 2016.
6. From at least 2016 through August of 2021 Harrison, who has been barred by the Financial Industry Regulatory Authority (“FINRA”) from affiliating with any member brokerage firm, has been acting as an unregistered investment adviser and trading options in his clients’ online brokerage accounts.
7. Through at least June of 2021, Harrison sent his clients monthly invoices misrepresenting the purported gains from his trading in the clients’ accounts in order to collect an improper performance fee from them based on the overstated gains.
8. From 2016 through the present, Harrison’s clients have suffered net
combined losses of over $2 million from Harrison’s trading. Despite these losses to his clients, Harrison has collected over $900,000 in fees from them.
9. Since June 2018, Harrison has transferred $279,365 in funds he received from his clients to his girlfriend, Irina Parfyonova (“Parfyonova” or “Relief Defendant”), which she largely used to pay for their joint living expenses.
10. Harrison also defrauded his clients and prospective clients by touting his experience as a “Wall Street” trader but not disclosing that FINRA barred him from the securities industry for misappropriating money from customers and engaging in unauthorized trading in his customers’ accounts.
11. As a result of the conduct alleged in this Complaint, Defendants violated Section 17(a) of the Securities Act, 15 U.S.C. $ 777(a), Section 10(b) of the Exchange Act, 15 U.S.C. $ 17j(b), Exchange Act Rule 106-5, 17 C.F.R. $ 240.106-5, and Sections 206(1) and 206(2) of the Advisers Act. Unless restrained and enjoined, Defendants will engage in future violations of the federal securities laws.
12. The SEC seeks jointly and severally from Harrison and Parfyonova disgorgement of each party’s ill-gotten gains derived from the conduct alleged in the Complaint plus prejudgment interest thereon, disgorgement from GTI of ill-gotten gains derived from the conduct alleged in the Complaint plus prejudgment interest thereon, and against the Defendants and Relief Defendant an emergency asset freeze, accounting and document preservation order, as well as against the Defendants permanent injunctions, and civil penalties pursuant to Section 20(d) of the Securities Act, 15 U.S.C. $ 77t(d), Section 21(d)(3) of the Exchange Act, 15 U.S.C. $$ 78u(d)(3), and Section 209(e) of the Advisers Act, 15 U.S.C. $ 805-9(e).