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Trading Firm, Founders’ $22.5 Million SEC Fines Upheld on Appeal

June 16, 2022, 4:59 PM

A trading firm and its two founders must pay $7.5 million each in SEC fines after the Second Circuit rejected their three arguments challenging the lower court’s decision in favor of the agency.

Avalon FA Ltd., Nathan Fayyer, and Sergey Pustelnik argued that the district judge allowed improper jury instructions, admitted expert witness testimony that should have been excluded, and awarded “excessive” Securities and Exchange Commission fines, but these assertions are “without merit,” the US Court of Appeals for the Second Circuit said in an unpublished opinion.

The lower court’s jury instruction on market manipulation “accurately informed the jury ...