Craig Karlis Sentenced to 9 Years For Fraud Charges

Securities Lawyer 101 - Brokerage Firm Charged

The Securities and Exchange Commission (the “SEC”) announced that on September 16, 2014, the former owner of a Boston Trading and Research, LLC (“BTR”), was sentenced to nine years in prison after pleading guilty to charges that he and his business partner defrauded more than 700 investors out of more than $30 million.  Craig A. Karlis, was sentenced to nine years in prison, three years of supervised release, and ordered to pay $4,378,306 in restitution to the fraud victims.  In March 2014, Karlis pleaded guilty to nine counts of wire fraud, among other charges.

Karlis’ business partner, Ahmet Devrim Akyil, was also charged, but according to a September 16, 2014 press release issued by the United States Attorney’s Office for the District of Massachusetts (“USAO”), Akyil remains a fugitive and is believed to be in his native Turkey.  The USAO unsealed an indictment charging Karlis and Akyil with criminal violations on October 28, 2010.

Also on October 28, 2010, the SEC filed a civil injunctive action in federal district court in Massachusetts against BTR, and its principals Ahmet Devrim Akyil and Craig Karlis for fraudulently raising millions of dollars from investors in a purported foreign currency (“Forex”) trading venture.  Among other things, the SEC charges allege that the defendants misappropriated some investor funds and lost the vast majority of remaining investor funds through Forex trading activity after promising investors that most of their funds were protected from such trading losses.

According to the Complaint, BTR collapsed in September 2008 due to significant losses accrued as a result of concealed trading far past the stop loss limits promised to investors.  Ultimately, BTR distributed the remaining funds, which accounted for only approximately 10% of account balances, to its investors.

The Commission’s complaint, which is pending, alleges that BTR, Akyil, and Karlis violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  The Commission seeks the entry of a permanent injunction, disgorgement of ill-gotten gains plus pre-judgment interest, and the imposition of civil monetary penalties against BTR, Akyil, and Karlis.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com.   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
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Boca Raton, Florida 33432
Telephone: (561) 416-8956
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