Grifco Inc (GFCI)

[cyofish]

If some of the proceeds from the IRA sale was used to cover the non-IRA account and you're under the age of 59 1/2 you may technically owe a 10% penalty for early distribution of your IRA. The portion used to cover the CTBG short shares in the IRA account won't be penalized. You may even be able to claim it on your current tax return as a worthless investment if the value of the IRA is $0.

Excess contribution to the IRA is not illegal. There is just a penalty element to it but it doesn't mean you can't do it. Anyways, this is more of a tax matter not a Security or a legal matter which is what SEC is concerned with.