A Denver District Court judge has ruled that Marc Mandel, who runs a nationally syndicated radio show called Winning on Wall Street, violated state securities laws by offering an online program where subscribers can mimic his stock trades in real time.
Gerald Rome, the state securities commissioner, filed a complaint against Mandel in November, arguing he was offering investment advice without a state license.
Mandel, whose company is based in Boulder and who uses the name “Wizard of Wall Street,” attempted to obtain a state license in 2007 but was denied based on his past record.
Mandel said his program, where subscribers would follow the trades he made through Ditto Trade Inc. of Chicago, was exempt under the newsletter exemption.
David Zisser, Mandel’s attorney, said although Judge Shelley Gilman sided with Rome, she didn’t outline what changes are needed to make the program compliant.
“If there is a way of doing the program that doesn’t result in him having to register as an investment adviser, Marc could well be interested in presenting it that way,” Zisser said.
Zisser said Mandel will wait to see what sanctions or changes the judge orders before planning his next step. A status hearing is planned for Sept. 2.
Mandel hasn’t taken on any new customers for his trading program since but has continued to fulfill his obligations to existing customers, Zisser said.
