Tuco Trading

Quote from BidBuster:

While they may not have been stealing customer funds and in their minds running an honest business, they were still an unlicensed broker/dealer which is illegal, in my mind that constitutes a level of fraud, even if the owners try to play the "we didn't know that was the rule" card.

They should have licensed the firm with the SEC as a broker/dealer and they would still be in business and all traders would have their money, the way you word it people may get the idea that it was a mistake on the SEC's part to shut them down and other unlicensed broker/dealers are safe. The SEC will continue to shut down unlicensed broker/dealers even if they are run by the best of guys with the best of intentions because that is the rule. My opinion is the Tuco guys took a calculated risk that they could save the registration money and fly under the radar and it didn't work out.

Just don't want newbies to think unlicensed firms are now safe because they are not.
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+1, well said except for the 'constitutes a level of fraud' part', with which I respectfully disagree. It is only fraud if the firm actively told customers that it was not attempting to fly under the radar. If they said nothing and left it to the customer to figure out if the firm's business model was an attempt to fly under the radar, I don't consider that 'fraud'.

It doesn't matter that the whole thing is a witchhunt or that busting them down is absurd and anti-capitalist or that the principles are people who would almost certainly not just rip their clients off. The fact is that they took a calculated risk by trying (yes, just like everyone else) to fly under the radar.

Anyone who ends up losing money knew they were taking a risk (assuming the firm did not actively tell the customers that what they were doing was more legit than they knew it to be).

Didn't they?

My money is at IB and it is at risk. I have other funds at ING Direct and it is also at risk. I have funds on deposit with the Royal Bank of Canada, and those funds are at risk; however, the risk there is vanishingly small.
 
from what I was told, we should have checks and wires by next week. Some got them today, some will get checks tomorrow and the rest of next week, along with more wires....
 
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