Thanks for reading today’s update of Guy Gentile and Sure Trader
On May 23, 2016 the owner of Sure Trader, Mr. Guy Gentile was officially charged with securities fraud by the US Attorney’s Office, District of New York. The official press release, from the United States Department of Justice can be found here.
On April 1, 2016 Trading Schools.Org published an article detailing the alleged securities fraud case against Guy Gentile.
The allegations of the fraud were that Guy Gentile, during the years of 2006-2009 had orchestrated several fraudulent penny stock promotions that had personally netted him several million dollars in illegal profits. The amount of personal profits to Mr. Gentile ranges in several million dollars.
In speaking with several United States based stock brokerages, two offshore stock brokerages, as well as dozens of United States based customers, the big question is how has Sure Trader been able to remain in business, and continues to accept US based customer accounts? Prior to Sure Trader, offshore stock brokerages that market directly to United States based retail customers have traditionally been a target of Federal securities regulators. The perplexing question as to how Sure Trader has remained unhampered with by US regulators, appears to no longer be a mystery. We now have the full story.
The Sure Trader “mouse trap”
Apparently, from July 16, 2012 through about July 2015, Sure Trader has essentially been used as an FBI “mouse trap”. What exactly is a “mouse trap?” The FBI has been recording everything that has been happening at Sure Trader. Guy Gentile essentially allowed the entire brokerage business to be “wired up”, and it was being used as a launch pad to execute various fraudulent securities schemes, and more importantly to trap individuals in the act of committing these frauds.
In many ways, the “mouse trap” of Sure Trader very much resembles a fake fencing operation. Where a local police department sets up a fake office location and then accepts all manner of stolen goods. They record everything. And then at some point, the choicest and most egregious criminals are indicted and jailed. Sure Trader appears to have operated as a sort of high-tech fencing operation where FBI agents have had open access to everything happening inside of Sure Trader. All of this was happening, right under the noses of the Bahamian Securities Authorities…and they had absolutely no idea.
Why would Guy Gentile allow this to happen? On July 13, 2012, Guy Gentile was originally arrested by FBI agents and jailed in Newark, New Jersey. Immediately after being arrested, Guy attempted to cut a deal with FBI agents. The FBI agreed to listen. The indictment was then resealed and temporarily shelved. Guy was allowed to leave the Newark jail. The premise of the deal was that the FBI would receive full cooperation on the pending securities fraud case, against the co-conspirators.
In addition, Guy would give the FBI, the United States Department of Justice, and the SEC full and open access to Sure Trader and that Guy would assist and curate new securities cases against various individuals and companies. All of this was in the vague promise that he could possibly “walk” from his own criminal prosecution.
Assisting the Government
Imagine for a moment, for the past several years, you have been executing various penny stock frauds and have profited millions of dollars. Executing these highly sophisticated, penny stock frauds. The government has been snooping around, subpoenaing documents, asking questions, expending resources, and conducting an investigation. The government has expended a great deal of resources, time and energy into building a case against you. Its reasonable to assume that they will “want their pound of flesh.” I find it extremely hard to swallow that Guy didn’t know that a criminal case was imminent.
In fact, Guy was very aware that the statute of limitation for securities fraud was five years. From the day he was arrested, it appears that he went into self preservation mode. The plan was to provide the government with an unlimited buffet of securities fraud and hope for one of two possible outcomes:
Outcome A: provide the government with enough cases against other individuals and companies, and hope that it would be enough to get his own case dropped.
Outcome B: cooperate with the government and hope to “run out the clock” on the 5 year statute of limitations.
And so, from about July 2012 through about July 2015, Guy went absolutely bonkers trying to build cases for the government. And by all accounts, it appears that he was one hell of a good government informant! Lets review some of his work.
Various Pump and Dump Frauds
Guy’s co-conspirators were Adam Gottgetter, Samuel DelPresto, Mike Taxon, and Itamar Cohen. He provided evidence (wire taps, etc.) against all individuals. All four plead guilty to felonies.
- Worked with the government to investigate twenty-five potential targets
- Provided a photograph and finger prints of a “highly dangerous penny stock promoter”
- Helped shutter several fraudulent broker dealers
- Helped uncover and foil several penny stock frauds, before they were able to be executed
- Cooperated with the SEC, which lead to $12 million dollars of penalties and disgorgement
- Provided evidence of a $1 million insider trading scheme involving a former J.P. Morgan analyst, which resulted in criminal prosecution
- Provided consultation and training to FBI agents
- Helped secure a conviction in a $1.9 million dollar stock spoofing scheme
Over the three year period that Guy worked as an informant, it appears that he did a tremendous amount of good. Surely, he thought that with so much cooperation, the US Attorney would drop his original, penny stock fraud case. However, the US Attorney decided to prosecute anyway. The original case, which was sealed on July 16, 2013 was unsealed and the US Attorney has decided to move forward and prosecute.
Statute of Limitations
What about the statute of limitations? It appears that Guy’s plan was to cooperate with the government and hopefully “run out the clock” on the five year statute of limitations. However, it appears that his strategy didn’t work as planned. Apparently, Guy signed a waiver that allowed the Statute of Limitations to be extended and delayed, while he was working for the US Attorney as an informant.
On July 14, 2016, the attorneys representing Guy filed a motion to dismiss the original case, on the grounds that the original statute of limitations had now expired. It should be interesting to see how the judge rules….
The following are the court documents, in their entirety. Its a long read. But worth it.
My own personal opinion
The court documents of this case are quite large. If you spent any amount of time reading the documents, it probably took you at least an hour. In my opinion, this is an extremely interesting read. Obviously, Guy Gentile feels like he has gotten a really bad deal from the US Attorney. I am sure that most folks that read the Motion To Dismiss are probably feeling sympathetic to his plight. I certainly do. He cooperated for 3 long years. During those 3 long years, I can only imagine the stress and anguish that he must of experienced.
Basically, he has been like a fish on a hook. Constantly trying to escape. But his captors tortuously offered him a sliver of hope. Allowed him to repetitively swim back down into the muck and grime. Over and over he went back and pulled out conviction upon conviction from a vast pool of fraud and deceit. Sure, he profited millions of dollars for his own fraud, but was it really worth it? I bet if you asked Guy Gentile if the crime was worth the payday, he would be the first to say, “HELL NO”. It cost him a marriage, a failed restaurant, had his name and reputation dragged through this blog, Sure Trader has taken a black eye, he has incurred massive legal expenses, personal anxiety that I can only imagine, and the threat of a very long prison sentence. If he walks free and his Motion To Dismiss is granted, perhaps he deserves it. In my opinion, it certainly appears so.
However, if he is convicted. Does it really make much difference? I cannot imagine that the prosecutor is going to ask for much jail time. And what judge, in light of his out-sized cooperation would give him a long sentence? It just seems like he has taken a real beating on this. How much more is warranted?
Well that’s it for today. Thanks for reading. And don’t forget to leave your comments below. Am very curious how the trading community feels about this case. So leave a comment!
I joined Suretrader because Warrior Trading was recommending it. Now I filled out withdrawal form and it’s been over 2 weeks and I still haven’t got my money. Is this a scam? I believe Ross Cameron from Warrior Trading is a scammer. He only shows recap not live trades. He charges $149/month for chat room and recommendations to buy a stock. Always low float for some reason. He always gets positive comments in youtube videos which is strange.
Ross Cameron is the largest con man online nowadays. He posts everything with smoke and mirrors. I would question the legitimacy of anything he is involved with.
Yes. Publishing tomorrow.
Looks like it’s going to get dismissed, based on the Judge’s comments:
I sent the transcript to my “legal department”. Whom may, or may not be a former Justice Department lawyer in Boston. He/She does not want their name being bandied about. In short, there are two arguments moving to the next phase. Can something be construed from transcript? No.
If you are asking my opinion, (which has no value) I feel that Guy deserves a break. Sure looks like he cooperated to the fullest, and worked with Fed agents for quite some time. Which lead to solid convictions.
Probably the most telling was the US Attorney response this past September…I did not post it. But, the prosecution offered Guy a plea deal where he could of plead to single count of securities fraud, and would have received probation. Personally, I would of jumped on that deal.
My gut say’s that the plea deal will come back into play.
Regardless, most people have no idea the emotional pain a person has to endure going through this sort of prosecution. The process is excruciating, expensive, and changes you forever.
Oral arguments on Dec 21, 2016 pertaining to statute of limitations and sixth amendment.
Will update then.
HI i have an account with suretrader and a US citizen should i be worried ?
No, you are fine! Sure Trader isn’t going to scam you.
Unless of course, if you day trade with Sure Trader…the fee’s are crazy high.
I wonder if the StockHorseWhisperer lady Stephanie/Fara is friends with the Mrs.Gentile, owner of DAS/suretrader/speedtrader. I guess they couldn’t let Ross of WT get a complete monopoly on showing a DAS trading room screen.
whats the latest with this ?? Shouldn’t have the judge ruled by now?
The US Attorney pushed out their response to September 23, 2016. I will update as soon as I find out.
I downloaded the US Attorney’s response and will be writing an update in the next couple of days. In short, his request was denied. But the bigger story is the plea bargain that he rejected from the Government.
Guy Gentile was a scumbag whole robbed millions from unsuspecting investors through penny stock scams. Then he turn rat for the FBI in a clear attempt to save his own ass. He’s the worst of the worst a real piece of crap all the way around and I hope he goes down hard for this.
Anyone know “the real story” about Guy Gentile and his relationship with the sheriff of Putnam county new York? Guy is (was) sheriff Smith’s right hand man, his most trusted confidential advisor, even by smith’s own admission. What was that about? Was Guy trying to nail sheriff Smith too?
Hello, I really need your opinion guys. What will happen to SureTrader. I want to open an account with them but when I read this article I don’t know if I still want to. Is is like safe? Will SureTrader stop doing business in the futur? or nothing of that would happen? does it depend of Guy Gentile? I don’t know Someone please clarify that for me.
Thanks in advance.
Sure Trader will be fine.
However, if you are a non-US resident, then consider TradeZero. The costs are much lower.
wow, i actually wanted to deposit to suretrader but something hold me back! now i chose another broker – tradezero, let’s see how it goes. Anyways, this story is crazy! Informing FBI&SEC for 3 long years…
guy gentile is hell of a manipulative and sneaky guy…
all the more reason to pay attention to brokers and FBI , frauds…
I wouldnt worry about Sure Trader stealing your money. On the contrary, with everything that has happened, its probably a really safe bet that nothing negative will happen with Sure Trader. Unless the SEC steps in regarding US customers.
I like Trade Zero. A lot. Nothing but good comments from current account holders. No complaints. And the pricing is way, way better than Sure Trader.
what do you think will happen Emmett? The lawyers made a very compelling case.. but who knows why gov still decided too pursue the charges.. theirs definitely more than meets the eye here….
The Anxiety alone must have been crazy for Guy.. crazy
I have been in the exact situation. Its horrible. Absolutely horrible. My own securities fraud case lasted 6 years. Your whole life just sits in limbo. Forget about sleeping without Ambien. Forget about making any sort of long term plans because you might be going to prison for years. The waiting and anxiety is in itself a form of punishment. Honestly, I dont know how this dude kept it together.
The Federal criminal justice system is like a big square shaped wheel. When it rolls over, it rolls hard and nasty. And it squashes whatever lay in its path. Its absolutely devastating being under the path of it.
The Federal prosecutors dole out punishment like a kid goes through candy. These are really, really nasty people. And smart. Really smart. Every-time I get even slightest idea of making a shady buck, I think about having to march my ass up to US Attorney Steve Peaks office and vomit out whatever information he desired. There is no amount of money in the world that is worth having to go through the meat grinder of the Federal criminal justice system. Average people just don’t get it.
When I see the shady stuff happening in securities business, it makes me cringe. And the thing is, people have no idea how the FBI collects evidence and stores it. Like a squirrel packing away nuts for the winter. They just sit on actionable offenses and sometimes charge, and sometimes let stuff slip though. Once you realize the FBI is looking at you, its way too late to save your ass. They just watch and wait. Then fuck you up.
In my humble and ignorant opinion, I believe that the original case was VERY STRONG. They expended a great deal of time and resources on that original investigation. He probably got away with millions of dollars. The US Attorney obviously wants his pound of flesh. But the amended charge was a single count vs the old charge being a boat load of charges. So they want something. Personally, I hope he walks. But knowing the US Attorney…they will want something. Maybe not a pound of flesh, but he is losing some flesh. Has already lost a lot of flesh.
If I were to forced to guess, he pleads out to a single charge and gets one year and one day. Or 4 months and 4 months half way house. I just cant see a judge giving more.
Does he go to trial? Not a chance. Then they will fuck him up really good. So if the case is not dismissed by August 25, then expect a quick plea bargain. Whatever happens, the worst is behind him. He probably does not feel that way, but the worst has passed. Going to a camp sucks, but he will survive it.
4 Months. In Baltimore they charge Police Officers with manslaughter for not putting a seat belt on a dangerous criminal and this guy gets nothing because he ratted on some friend. You did not see Gordon Liddy rat. Where is the justice. I say tar and feather him.
Geez Rob, I was expecting you would of recommended death by firing squad.
Rob is feeling cuddly and nice today.
If they throw the book at him, there’s not a lot of incentive for anyone else to cooperative in the future.
If Suretradef is a Shill for the FBI & SEC, then I would like some of that 5k+ in commisions I paid returned to me!
Thanks for the new info Emmett. I’m sure most of us on the outside had no idea of Gentile’s involvement. All we saw was his local support by the sheriff buddies for his community “activism”. In my opinion, I don’t really feel that generous. However with the new info, he has done some legit snooping work with the sec and fbi. I hope WarriorTrading gets shut down because of this eventually. They promoted Suretrader and Speedtrader like crazy before the fallout from the tradingschools review and comments. American Greed has quite a few examples of fraudsters cooperating with the fbi and “coming clean” only to return to new related crimes a few years later, then they end up completely locked away in the end. I would give Gentile a year or so in prison time after all this out of a sense of justice. Then it’ll be up to him if he reforms by himself for the rest of his life.
Subscribe to his YouTube channel! https://www.google.com/url?sa=t&source=web&rct=j&url=http://m.youtube.com/watch%3Fv%3DxxEhLyK_A2s&ved=0ahUKEwji76GXlYHOAhUB82MKHatwBGwQtwIIGzAA&usg=AFQjCNFc_6frlw8z4rNLCkPWFm6o2Aat-A
Am really curious how the court responds to the request to dismiss the case. The government has to respond by August 25, 2016, else the case is dismissed. Honestly, even if he pleads out, and with all of the cooperation that he provided the government…are they really going to send him to prison? I hope he gets a slap on the wrist. Looks like he provided a lot of assistance. But of course, I don’t know the whole story because the government cannot respond.
Guy has made a few enemies over the years. Was really surprised that people came out of left field and gave me insider comments. The theme is that he is very manipulative and has been doing sneaky stuff for years. Even got a story about gay porn. Its unrelated to the case, but interesting and hilarious.
I have only heard negative things about Guy. He stole money and tried to save himself. Didn’t hear about the gay porn yet lol is he a porn star now??
lol, and that smirk Sykes is still at it this summer. https://www.youtube.com/watch?v=gE7P0ugQsww
I think the deal they should offer him is instead of a public hanging, he be allowed to rot in jail the rest of his life. But I hate con artist that take advantage of fools, but that is just me.
BTW, sorry Emmett. LOL.
Lol! No worries Rob! My feelings would be hurt if you didn’t troll me.
Man that is crazy but will suretrader stop taking US customers and what about its current US clients and accounts? FBI must know every US trader that opened account there.