This article finally marks the sad and pathetic end to Guy Gentile’s Bahamian brokerage known as Sure Trader.
The Bahamian regulator, as of March 2020, has now placed this rotten fraud filled carcass and never-ending financial shitshow into receivership.
Guy Gentile is the gift that keeps on giving. His exploits are legendary. And not in a good way. I will miss writing about Sure Trader.
TradingSchools.Org has now written seven articles about Guy Gentile, over the past 6 years.
After each article, Guy screams and hollers at me. Always promising to sue me. But like a toothless old dog, the threats and snarls and missing teeth become sort of endearing. It is pathetic — but in a cute sort of way.
The remainder of this article is especially for all the suckers that opened an account with Sure Trader. For all the shady “trading educators” that pushed their customers to Sure Trader. And for all the publicly traded companies that were abused by Sure Trader through “pump and dump” schemes.
What you are about to read is going to make all of you very mad.
Sure Trader: What The Regulators Discovered
As readers are aware, Sure Trader officially ceased operations on November 8, 2019.
However, what readers were not aware, is that Sure Trader was being audited by the Bahamian Securities Regulator.
But the Bahamian Securities Regulator is not known for its amazing powers of investigation. Detectives…they are not. In fact, the de facto head of the department also serves as custodian of the local animal shelter and sells conch cocktails from a roadside stand.
However, they did get one thing correct…knowing that Guy Gentile is an expert swindler with more stories than Mark Twain, they decided to hire American based accounting firm Ernst and Young to conduct a full audit and investigation of Sure Trader.
The folks at Ernst and Young have seen it all. The forensic auditors are real pros. They stripped away Guy’s fancy stories and like gasoline over cheap paint…they got to the truth.
The Truth About Sure Trader
According to the Securities regulators and auditors, it turns out the Sure Trader never really was a stock brokerage. Not even close.
In fact, according to court documents, Sure Trader was never actually executing ‘real’ stock trades on any customers’ behalf.
Customers also thought they were depositing funds into segregated accounts under the protection and purview of the Bahamian regulator. But as Ernst and Young discovered, the customer accounts were actually being sent to non-registered entities in the UK and Canada. This was in direct violation of the Bahamian regulator.
The money went right into Guy’s personal piggie bank. Such a safe place.
Additionally, and most troubling…Sure Trader was never actually executing trades on customers’ behalf! In fact, and as Guy Gentile admitted during the examination that all customer trades were “simulated.”
Guy Gentile purported that Sure Trader does not own any inventory of securities, but rather is in a “short” position relative to its clients.
In other words, Guy Gentile’s Sure Trader was nothing more than a bucket shop. A gambling parlor. Where he acted as the “bookie” and paid bets if traders were somehow miraculously able to earn a profit.
The Securities Regulator even stated, “Sure Trader is nothing more than a Ponzi scheme.” I wish I were making this shit up.
Further, the regulator stated to the Judge that “Unbeknownst to customers, they were never actually buying or selling any stocks.” And “Customers bets were paid directly by Mr. Gentile and not from segregated or regulated accounts.”
How It All Worked
According to the auditors, new accounts were mainly referred by day trading chatrooms — they even mentioned Tim Sykes by name.
Money was deposited into illegal accounts, as per the regulator, and then traders were assigned “monopoly money.”
The trader would then trade their monopoly money on the DAS platform. Of course, the DAS platform is owned and operated by Karen Gentile. Guy’s ex-wife.
Traders were charged all sorts of whacky fees. Exchange fees, margin fees, transfer fees, commission fees, platform fees, you name it — this burrito had more ingredients than Chipotle. But there were no actual trades! No exchange, no margin debt, no transfers, no nothing. It was all a mirage, meant to hustle consumers, according to the Bahamian regulator.
All of it was just a clever stock trading video game that tricked consumers into believing they were actually trading real securities.
If you had an account, don’t you feel stupid?
Does The Fraud Continue?
Fraudsters typically don’t stop committing fraud until they are imprisoned.
Guy Gentile has already admitted he committed securities fraud. But he skittled out of going to prison…only because he pulled a Tekashi 69.
Truthfully, I am not upset he is a rat. Everyone is a rat. When the Fed’s are dangling 10 years over your head, you would rat out Grandma for a sentence reduction.
But the big question, does the fraud continue? Is Guy still defrauding customers with yet another phony stock trading company named F1Trade?
Surely, Guy will never admit that he has anything to do with F1Trade. But what if the Fed’s come after his ex-wife Karen? Will she squeal? Likely she will. But that will be another article.
Like I said, Guy Gentile is the gift that keeps on giving.
Thanks for reading.
And thanks to the advertising sponsors at TradingSchools.Org. Without your support, I couldn’t write these shitty articles.
Additional Sources: SEC V Guy Gentileponzi-scheme