A federal judge all but tossed the government’s case against “rogue” trader and ex-FBI informant Guy Gentile — likely ending the 18-month civil fraud case that Gentile claims was brought in retaliation.
US Judge Jose Linares ruled on Monday that the Securities and Exchange Commission’s claims have largely been withdrawn or thrown out.
While Judge Linares ordered the SEC to file another complaint by Oct. 6, he also gave Gentile’s lawyers the green light to prepare an order to dismiss — a procedural move that appears to pave the way for the end of the case.
Gentile became an FBI informant in 2012 after the feds accused him of running a pump-and-dump scheme.
Earlier this year, the SEC dropped a $17 million claim against him after a Supreme Court ruling limited the time for clawbacks.
Gentile helped put away more than a dozen financial scammers — but then turned on the feds when they refused to drop their case against him.
Adam Ford, Gentile’s lawyer, and the SEC declined to comment.