Using a new data-driven algorithmic analysis method to detect securities fraud is bearing fruit as the Securities and Exchange Commission (SEC) announced charges against a Wisconsin-based investment advisor who bilked investors through a process known as “cherry-picking.” SEC uses data driven analysis to uproot fraud scheme targeting investors The SEC actions announced Monday pointed the finger at Mark P. Wellhouse of Wellhouse & Associates, saying he purchased options on behalf of clients and himself, placing the profitable trades in his own account but shuffling the unprofitable trades into the client accounts. The scheme netted Wellhouse $442,319 in ill-gotten gains by…
New SEC Data Driven Enforcement Shows Results In Fraud Charges
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.