SEC v. Gonul Colak and Milen K. Kostov (naked short selling debate, 2014)

Settled

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In January 2014 the Securities and Exchange Commission settled an administrative order with Gonul Colak and Milen Kostov, finding that they kept uncovered short positions in over 20 stocks by moving them between brokers and staging sham trades. The combined relief is $420,000 disgorgement, $32,315 interest and $220,000 in penalties.

The record

What was ordered

Civil penalty

$220k

Disgorgement

$420k

Prejudgment interest

$32.3k

Total relief

$672k

Alleged gain

$420k

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 Securities and Exchange Commission announced this matter on January 31, 2014 as release 3-15712. The respondents named are Gonul Colak and Milen K. Kostov (2 individuals, 0 entities).

This library tags the matter as naked short selling debate, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The relief recorded in our data combines both respondents: Colak, disgorgement of $285,600, interest of $21,975 and a $150,000 penalty; Kostov, disgorgement of $134,400, interest of $10,340 and a $70,000 penalty. The order treats about $420,000 as the profit from the scheme.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• The naked short selling debate — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2014-01-31 Administrative proceeding instituted (cease-and-desist)

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 order

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.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.