SEC Closed Case Against Two Former Traders
The SEC finalized a case against Lawrence Billimek and Alan Williams regarding a multi-year front-running scheme.
Updated on Sept. 23, 2026 in Financial Crime
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The U.S. Securities and Exchange Commission has concluded its legal case against former trader Lawrence Billimek and his associate Alan Williams. The final judgment orders the pair to pay over US$59 million in disgorgement and interest for their role in a multi-year illegal trading operation.
Why it matters
The case highlights the severity of regulatory crackdowns on internal trading schemes that compromise the integrity of large pension funds. The final judgment ensures the participants are held financially accountable for illicit gains beyond their prison sentences.
The U.S. District Court for the Southern District of New York entered final judgments requiring the defendants to pay US$59 million. This follows the 2024 criminal sentencing of Lawrence Billimek to 70 months and Alan Williams to one year.
The players
Lawrence Billimek
He was an equity trader at a TIAA-CREF subsidiary who used burner phones to coordinate illegal trades.
Alan Williams
He was an associate who received tips from Billimek to execute front-running trades ahead of the pension fund.
U.S. Securities and Exchange Commission
The federal agency responsible for regulating markets and bringing civil enforcement actions against financial misconduct.
U.S. District Court for the Southern District of New York
This federal court oversaw the legal proceedings and issued the final judgments against the defendants.
The details
From 2016 to 2022, Lawrence Billimek, an equity trader at a TIAA-CREF subsidiary, tipped Alan Williams on upcoming firm trades. The pair used burner phones to coordinate front-running activities ahead of the pension fund.
Timeline
The scheme operated from 2016 to 2022.
The SEC and Department of Justice filed charges in 2022.
Billimek and Williams received prison sentences in 2024.
The SEC concluded the case with final judgments in September 2026.
Legal Context
This case follows the enforcement patterns established under the Securities Exchange Act of 1934 to penalize market manipulation. It reflects a broader trend of federal agencies utilizing criminal forfeiture and civil disgorgement to deter insider trading within major financial institutions.
The conclusion of this case reinforces the regulatory oversight protecting pension funds and retirement assets from insider manipulation. These judicial outcomes serve as a deterrent against similar misconduct that could otherwise threaten the stability of institutional investment portfolios.
The takeaway
Front-running remains a major target for federal investigators using advanced surveillance and communication tracking. Maintaining strict internal compliance remains the most effective defense for firms against rogue traders seeking to exploit internal data for personal profit.
Further reading
Learn more about enforcement trends in our Financial Crime section.
Source note: This article includes information reported by Investment Executive.
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