The SEC charged Gary Steven Costello, a former registered representative of a broker-dealer and investment adviser representative of its affiliated adviser, with fraud for canceling certain losing trades he had placed in his personal brokerage account and then rebilling them to some of his clients’ and customers’ accounts (the “cancel-rebills”). At the time of the cancel-rebills, Costello had significant unrealized losses on those trades. By moving those trades from his own account to some of his clients’ and customers’ accounts, Costello transferred his unrealized trading losses to some of his clients and customers. Costello was ordered to pay disgorgement and penalties of more than $1.6 million and barred from the securities industry.