Tuco not an anomaly

Discussion in 'Prop Firms' started by downtickboy, Mar 28, 2008.

  1. As probably a few of you know the Tuco situation is not an anomaly. I have a trader friend who has also been running an LLC business for several years now. They have actually been around much longer then Tuco however they were much smaller and did not go out of their way to recruit new traders. Anyway they too were recently contacted by the SEC and ended up shutting down their LLC prior to anything of significance happening because they knew it was coming. Like I said they were relatively small compared to groups like Tuco and were forced out of business. So like others suggested if you are still trading under a model like this I would highly suggest pulling your money out and looking for alternatives instead of thinking Tuco was an anomaly and targeted to be made an example of. This model is dead and you are just gambling if you continue to trade under an LLC model like that.
  2. yep... i heard they were going to attempt this back in fall. it really is ashame because the laws they are citing aren't applicable to the LLC's business models.

    but the SEC has the guns so i guess we have to comply huh?
  3. bandit


    The SEC can suck my sack. They will take in 400 MILLION in fees in the first quarter, and make close to 2 BILLION this year in sales proceeeds fees alone. WHERE THE HELL IS ALL THAT MONEY GOING? But they still have to stomp on every trader. Wish they could feel some of the pain they have caused traders over the past 15 years by changing the rules. Every year it seams I have to change something for the worse just to appease those aholes.
  4. i would be happy if they just told us who bought those airline puts on the friday and monday before 9/11.

    sigh.. i ask for too much.

    i know.. maybe they could investigate illegal naked shorting and force the DTCC to clear the trades.

    nah... not gonna happen.

    i got it! take down Tuco and scare other legal LLC's into submission.
  5. What was amazing was how fast it happened. I sent my friend the info on the Tuco stuff as a heads up and then 2 weeks later they are shutting down their business. Funny that they were contacted by the SEC because they flew so far under the radar. They did not advertise or actively solicit new business. They had a core group of active traders that have been trading for a long time and basically did not grow too much beyond that.
  6. tito


    Did your friend's organization require their traders to have a S7 license?
  7. No he did not.
  8. Since the firm is no longer in existence, why don't you just name it so people can investigate it themselves.

    If it's gone, there is no need for confidentiality.
  9. Since it is a good friends I am not going to do that and would not really help you anyway because most you never have heard of them because they did not recruit people, have a website, or advertise.

    My purpose was let people know what happened to tuco was spreading so tuco was not a one off situation if that is what people were thinking. My friends situation did not escalate like tuco because they just shut down and returned everyones money prior to anything happening.
  10. They know exactly who it was - too bad MANY were US government employees.
    #10     Mar 29, 2008