SEC v. Derek J. Slattery and TradeSmart Software RIC Corporation (2022)

Judgment entered

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In May 2022 the SEC sued software engineer Derek Slattery and TradeSmart Software RIC over an alleged $1.8 million offering fraud tied to Apple options trading. After both defaulted, the court entered a final judgment on February 7, 2023 with injunctions and joint liability for $1,051,866 in disgorgement, $32,919.28 in interest and a $1,057,366 penalty.

The record

What was ordered

Civil penalty

$1.1m

Disgorgement

$1.1m

Prejudgment interest

$32.9k

Total relief

$2.1m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The SEC announced the complaint on May 5, 2022 (LR-25382) in the District of Nevada, covering October 2018 to March 2020. The money allegedly paid living expenses, other business activities and intermittent Ponzi-like payments to investors seeking withdrawals.

The Ponzi tag is removed because the release is headed an offering fraud, with Ponzi-like payments intermittent.

Outcome. The District of Nevada order of February 7, 2023 grants the SEC's motion for final default judgment against Slattery and TradeSmart, following the entry of default against them on October 2, 2022 when they did not defend. It permanently enjoins both under the Exchange Act antifraud rule and Securities Act Section 17(a), and makes them jointly and severally liable for disgorgement of $1,051,866, prejudgment interest of $32,919.28 and a civil penalty of $1,057,366, $2,142,151.28 in all. Because it is a default judgment, the allegations were accepted on the SEC's application, not tried. The SEC's whistleblower notice dates the qualifying judgment February 8, 2023.

Timeline

1. 2022-05-05 Litigation release published
2. 2023-02-07 Default final judgment entered against Slattery and TradeSmart

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• Order granting final default judgment (D. Nev., Doc. 44)
• SEC whistleblower notice 2023-034

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.