Penny Stock Trader Can’t Dodge SEC Suit on Record

By Mike Curley (May 26, 2022, 3:58 p.m. EDT) – A federal judge in Minnesota won’t let brokerage firm Carebourn Capital LP escape a U.S. Securities and Exchange Commission lawsuit alleging it raked in profits while circumventing regulations, claiming that the SEC complaint explains why the company was required to register as a reseller with the agency.

In an order filed Tuesday, U.S. District Judge Katherine M. Menendez rejected Carebourn’s bid to dismiss the SEC lawsuit, saying the agency had sufficiently alleged that she met the Securities definition of a broker. Exchange Act by engaging in the activity of buying and selling securities as part of its regular business.

Judge Menendez…

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