Thanks for reading today’s update regarding SureTrader.com and Guy Gentile
This past Monday, on May 28th, 2016 the owner and founder of Sure Trader and Swiss America Securities was officially charged with criminal Securities Fraud by the United States Department of Justice, as well the United States Securities and Exchange Commission. Specifically, the criminal charges were filed by the US Attorney’s Office, District of New Jersey. These are very serious allegations. There is a high likelihood that Guy Gentile will be going to prison for many, many years.
The US Attorney is alleging that Guy Gentile used his position as a broker dealer to execute a $17,000,000 stock fraud. Specifically, he used his access to customer funds and customer accounts to orchestrate the appearance that there was massive buying pressure for two fraudulent penny stock companies named Raven Gold Corporation and Kentucky USA Energy Inc. The appearance of this heavy buying pressure, working in tandem with fraudulent mass mailings touting these companies created enough upward price momentum that Guy Gentile was able to unload his unregistered shares for what is alleged to be several million dollars in trading profits. For those interested in the particulars of how this fraud was executed, please read the official indictment from the US Attorney:gentile_guy_indictment.compressed
If you read the official indictment, then you also noticed that Guy Gentile has two co-conspirators named Itamar Cohen and Mike Taxon. Both of these individuals have also been charged with federal securities fraud, and both have already plead guilty to both civil and criminal fraud charges in this matter. If you are interested in reading about their individual involvement in the fraud, then please read the following SEC complaint filing. This document gives you a deeper understanding of how all three worked together to bilk investors out of millions of dollars.
So what exactly is happening here? Well considering that I have personally been down this hellish road, I can tell you exactly what is happening. Both Itamar Cohen and Mike Taxon have already plead guilty to the criminal charges. Both of these guys, as part of their plea agreement and reduced prison sentences are now fully cooperating with the US Attorney and have agreed to testify against the biggest fish….Guy Gentile. In a nutshell, Guy Gentile is totally screwed. In the coming weeks, both Cohen and Taxon are sceduled to be sentenced in Federal Court. Their sentences will most certainly be much less than Guy Gentiles’s and the length of their sentences should be used as a guide to the sentence that Guy is likely to receive.
If my writing seems too assured, this is only because I was also charged with criminal securities fraud and served a three year sentence in Federal Prison for securities fraud. I can tell you from personal experience, that I do not wish this experience upon anyone. The general public has no idea how thorough the FBI and the US Attorney is at investigating and sending offenders to prison. They turn every single stone, they follow every lead, they are methodical, they are patient, and they are fucking smart. In my fraud scheme, I ran boiler rooms and unbeknownst to me, they had an agent that actually worked for me. He got close to me. In a million years, I would of never guessed that this guy was an FBI agent. And they planted fake accounts into my customer book. They surveyed my every single activity for a full five years and then indicted me on the very last day of the statute of limitations.
By the time I was indicted, they knew the color of my least favorite underwear. They knew were every penny was hidden. They had interviewed anyone and everyone that was close to me. And they used them as leverage against me. People that I thought would never betray me, in fact betrayed me at the drop of a hat. They are ruthless and blind in their pursuit of the criminal. They never quit, and they will work even the softest angle. For instance, my father was undergoing chemotherapy for throat cancer and he weighed barely 100 pounds, they threatened him with what would of been a sure death behind bars, and he only worked for me part time doing office chores. My partner, also guilty as hell, they turned him and he got a reduced sentence to cooperate against me. When the Fed’s show up with their badges, all friendships instantaneously terminate in a moment of panic and fear.
As I watch this drama unfold with Guy Gentile, I cannot help but cringe at the amount of emotional pain that he is experiencing. There is no escape from it. Its like having your hand held to an electric stove top, and your hand is searing away and smoking and blistering. When the Fed’s put the heat on you, and you know you are going to prison, the emotional and physical pain of the experience is beyond excruciating. Its an inescapable thing. You want it to end. And all you can think about is the offer to plead guilty that the US Attorney has on the table.
The nastiest smart person you will ever meet
The thing about the assistant US Attorney’s, they are all extremely smart. You cannot con them. You cannot charm them. You cannot manipulate them. They have tremendous power and a conviction rate of nearly 100%. And when you fight them, you have two choices…either go to trial (suicide) or you take the plea deal. And the plea deal means prison time. The first deal they offer is always the best. I learned that the hard way. When under federal criminal investigation, take the first offer they give because it only gets worse over time. The harder you fight these people, the tougher they get. I know that this sounds insane, and most people have this sense that the justice system is somehow even and fair, but in the Federal criminal justice system these people are absolutely ruthless and nasty. They have no problem giving a person a 20 year sentence for what might seem like a minor offense. There is no such thing as prison overcrowding at the Federal level. The Federal government has a printing press and they will just make a new prison to house the next batch of idiots that do stupid shit.
No amount of money is worth it
Sometimes I hear people say that “I would commit that crime and make millions in exchange for a couple of years at Club Fed”. And to that I would say, what the fuck are you talking about? The first thing you have to realize is that they are going to discover where every single dime is stashed. They nearly always find the money. And they take it from you. They will take anything and everything that you own, it will be viciously ripped away. Nothing is off limits. Have a spouse? Cannot hide it with her. Have an offshore account in a pirate cove? They probably going to get that too. Gold coins or precious metals? They will gladly tear out your carpet and punch holes in your walls to find your valuables. And then after they strip out the valuables, they auction off your home and sell your car. When they are done with you, there is a high likely hood that you will be financially destroyed.
And what about this “Club Fed” nonsense? Everyone seems to have this odd notion that the Federal Prison Camps are just these wonderful places to lazy the day’s away. Where you play tennis, read books, work out, and hang out with a bunch of cool dudes shooting the shit. What a bunch of baloney! The reality is something entirely different. Its a shitty place where you will lose your name and become a number. Literally, you are just a stupid fucking number. Everyone has to have a job, which for me meant being stuck in the dish room where I had to get up every morning at 4:40 am and wash dishes for a camp of 400 inmates. And the food is crap. All starchy filler where the goal is to put enough calories in your gut so that you don’t die of starvation.
Get a toothache in prison? Oh wow. You are in for a real nightmare there my friend. The camp dentist usually comes to the prison camp once a month. And you are not getting any filings. The achy tooth comes out. And it comes out fast, by a dentist that would be better suited working at Auschwitz.
Develop any sort of serious medical condition? My oh my. They are not taking you to the local hospital to take advantage of your Obamacare. Nope. You have to fill out a lengthy form, submit it your asshole “counselor” and they might make an appointment with the camp doctor. And the camp doctor may or may not show up this month. I cannot tell you how many dudes I saw die from simple maladies, things that a free person nearly always beats.
The ultimate humiliation is to die in prison. The first time I saw it happen, I was shocked. The prison calls in the camp medic that will pronounce you dead, usually hard and cold in your bunk. Once you are pronounced dead, they then proceed to handcuff the body, chain the dead legs together, chain you to the gurney, and only then do they wheel your chained up dead body out to a van where your body is tossed into the back. The family of the deceased is given only a phone call, “Your father, son, etc. is at the county morgue. His remains are all yours”. Seriously folks, there are no flowers and tears. Instead, the very moment the body is out of the prison dorm, then the inmates scramble to steal every little thing of value. Asshole inmates fight over whatever meager possessions are inside of the small metal locker. Its ugly stuff folks. This is not the Orange Is The New Blac BS you see on TV. This is raw humanity where everyone is trying to get through the day and hopefully someday get out of this hellhole.
For me, the most humiliating thing was having my young child visit me in prison. He had only known security, comfort, happiness, a family together, and a life free of financial worry. There is truly nothing more humiliating and shameful in this world than having your child visit you in prison. I could only bear it once. After my wife and son left the visiting room, I went out to the most private area I could find and I sobbed like I had never sobbed before. Great wracking sobs that I could not control. I had hit the absolute bottom. I had been stripped of everything.
Living a life of deception and dishonesty
In my own dealings with financial fraudsters, the common trait that we share is that our lives were filled with deception and dishonesty. We are always deceiving for gain. Everything is about creating the illusion and appearance of something fantastic. We deceive in various degree to various audiences, always looking for the angle. Always trying to get something from somebody. For myself, I can say that my thirst for more was fueled by several factors that began in my youth. As time progressed, I became more and more cunning and ruthless and my frauds became more and more audacious. In particular, financial fraudsters usually start off as petty hustlers working minor angles and then progress deeper and deeper and they learn to exploit loopholes in the financial system. For me, I started off as a small time, penny stock hustler but over time I become increasingly more complex, sophisticated, and manipulative. I became callous to my fellow man, and highly manipulative to the people that loved me most.
When I look at Guy Gentile, I see a person that has probably been dishonest and deceptive for a very long time. I would find it hard to believe that his involvement in the Raven Gold and Kentucky Energy penny stock scams are his only forays into this arena. In fact, I have been highly critical in the past of Sure Trader. Why? Since Sure Trader has only been around for a few years, it has been the primary feeder within the day trading educator community.
In particular, I wrote a review on Tim Sykes Profit.ly website where I discovered that many of these so called day trading educators were only using the day trading simulator from within Sure Trader to “build a track record” of successful trades and that were later used as marketing bait. In other words, the educator could have unlimited amounts of simulated trading accounts and just by sheer chance, one of the simulated trading accounts could produce an amazing equity curve. The newbies looking to learn how to day trade would cough up thousands of dollars to “learn the secrets of day trading” and they would be compelled to purchase by these supposed real trades that were reported through the Sure Trader reporting system.
In fact, it seems like every month someone is sending me screen shots of some trading educator that supposedly has a live account at Sure Trader and they magically turned a couple of thousand dollars into a couple of million dollars in only 3 days. Of course, some people howl how unfair I am because of these supposed records undeniably came directly from Sure Trader. However, as folks are now discovering, that Sure Trader is a creation of Guy Gentile and he knows exactly how to manipulate people and create an illusion. That should be plainly clear by now.
More About Sure Trader
At the most fundamental level, what is this Guy Gentile creation known as SureTrader.com? Essentially, Sure Trader caters to the day trading dreamer. The day trading educators needed a place where they could send people with very little money to trade, that needed additional leverage. Sure Trader was born from this need. The hustle of Sure Trader and the various educators that send them traffic is that if a person buys a day trading education for a couple of thousand dollars, and they open a thousand dollar account with Sure Trader, then they will be able to soon quit their day job and easily make thousands of dollars scalping profits from the stock market. I have written extensively about these fraudsters. Who makes money?
The only people that typically make money are Sure Trader through high commission rates and the educators that dupe their subscribers. Truth be told, I dont really blame Sure Trader much. But I absolutely loath the day trading educators that commit these frauds, in various forms. Lets take a look at the most common frauds.
Most common types of trading frauds
- The educator, while trading in a live trading room will use a trading simulator that generously fills limit orders. This gives the impression of easy profits and the person is directed to open an account with Sure Trader, where they will also be able to supposedly copy these trades. However, executing limit orders on live markets is not so easy with real money.
- The educator will trade a very small, live trading account in only thin volume, lightly traded stocks. The educator gets his fill and then the horde of subscribers that follow the educator will scramble to copy the trade. The mad dash to get filled by the trading room participants immediately gives the educator an easy profit. The educator exits the thinly traded stock while the trading room members scramble through the mess. Yes, I am talking about Jason Bond Trades and Warrior Trading.
- The educator creates false spreadsheets that look highly sophisticated and seductive.
- The educator does not show a trading DOM on screen but simply calls out trades and uses generalities regarding entries and exits.
- The educator fills a trading room with fake people, known as “straw man traders”. These are fake people that create streams of messages that give the impression that everyone in the trading room is making money, but its all in illusion.
What is going to happen to Sure Trader?
Well, since the indictment was unsealed by the US Attorney and Guy Gentile was formally charged with securities fraud, there a few noticeable changes. First and foremost, Guy Gentile has been completely stripped off of the Sure Trader website. There is no mention of him whatsoever. In all likely hood, he has already surrendered his passport to the FBI and is on what is termed pre-trial services. Basically, he is on a sort of federal probation where he waiting to go to trial, or take the plea deal and head off to prison. While in pre-trial services, he will have to pee in a cup and a federal agent will visit his home unexpectedly. They will basically keep a close eye on him to make sure he doesn’t flee the country.
The broker dealer for Sure Trader is another company that Guy owns, this company is known as Swiss America Securities. If you now visit the website, everything has been stripped off and it appears that Swiss America is no longer operational. In all likelihood, all of Sure Traders trades are now being routed through some unpublished avenue.
I reached out to Sure Trader over the past few days and attempted to get some guidance on what is happening with the company. It appears that the company is now being managed by a local “place holder” executive named Antonio Collie. A search of Antonio Collie in the Bahamas reveals that he is a local account, but in reality his is just a proxy for Guy Gentile. I did speak with Justin Ritchie, known as the Deputy Director of Sure Trader and he did not want to comment. However, he did reach out to me and said that Sure Trader would be releasing a press release in the coming days. I expect that the press release will talk about how everything is going to be OK with the company. But in truth, nobody really knows. The vast majority of the trading accounts are US based customers and I am sure the SEC, the FBI, and the US Attorney have been watching Sure Trading for many months. Technically, since Sure Trader caters to mainly US customers, they should be registered with FINRA, but thus far they seem to have dodged the bullet of the regulators. Will this continue? Will the next axe to drop be onto Sure Trader? I dont know. It would be irresponsible to speculate. However, knowing the shit storm that Guy is currently facing, I would be really surprised if he pulled anymore BS.
One Final Note
I remember that during the final two years of my fraud investigation, it was plainly obvious to me that I was heading to a federal prison. The federal criminal justice system is painfully slow and so you have a lot of time to think about the situation. I remember my lawyer telling me, “do plenty of good deeds, do some public service work, get plenty of nice letters from influential people in the community”. And so, I went into full overdrive trying to make myself look like this community super hero. I got involved in the Big Brother program, I donated time at the Boys and Girls Club, I organized this ridiculous neighborhood watch program where I walked around the community with a walky talky and acted like I was patrolling the streets (the walky talky never had any batteries in it). Of course, I was just the same deceitful moron that was attempting to yet again pull a con and maybe convince a judge that I deserved a lighter sentence. The US Attorney could see through my bullshit and gave me zero credit for my good deeds.
When I look at Guy, I have to chuckle just a little bit. If you look at his Linkedin profile, you cannot help but notice that since 2014 he has been on an all out charm offensive, attempting to create this zany image of a community super hero. In the past year he is now a volunteer fire fighter, has supposed enrolled at the University of Phoenix and his studying criminal justice, is a volunteer peace officer, a volunteer for the US Coast Guard Auxillary, a “trusted adviser” of the Putnam Valley Sheriff, a fingerprint technician, a volunteer for the Humane Police that protects animals or whatever. Of course, all of this stuff is just a bunch of baloney and he is obviously prepping the judge for a reduced prison sentence. Its pretty laughable, but if you want a real laugh, you have to see this ridiculous video that Guy created as a member of the Putnam County Traffic Safely Board. I got a big laugh out of this video as its so darn cynical and obvious.
Speaking for myself, none of my good deeds in the community did a squirt for reducing my sentence. The only thing that worked was cold hard cash. The US Attorney knew that this was the only thing that really motivated me. And they squeezed me hard. At the end of the day I sold every possession that I could find, and most shamefully, my mother even sold her home and gave the cash proceeds to the US Attorney ($200,000) which reduced my sentence an entire year. Embarrassing stuff folks. I went from making millions to being flat broke and in prison.
Well that’s it for today. I sort of rambled on this article. So if you made it through my painful prose, then I have to thank you for taking the time for reading this story. Once again, thanks for reading and don’t forget to leave your comments below.