The U.S. Securities and Exchange Commission has sued the financial adviser to the Kurr Foundation, alleging he stole $9 million from the charity and committed securities fraud.
The SEC accuses adviser John H. Rogicki of using his role to steal money from the foundation to fund his extravagant lifestyle, cover personal expenses, and purchase real estate for his children. The complaint states that at the time of the thefts, Rogicki was trustee of the foundation, executor of the estate, and managing director at Train, Babcock Advisors LLC, an SEC-registered investment adviser firm based in New York.
Rogicki Uses Position To Steal
Established to support various education services, health organizations, and children and youth services, The Kurr Foundation is funded by the estate of Sara Zock. Rogicki became the president of the foundation after Ms. Zock’s passing.
Using his role as investment adviser, Rogicki liquidated securities in the foundation’s account, stealing the proceeds by wiring the money to his personal accounts via the account of the deceased founder, which he also controlled in his capacity as executor.
According to court documents, Rogicki made more than 200 unauthorized wire transfers from the foundation account, totaling more than $9 million, over the course of 12 years.
SEC Seeking Permanent Injunction
The SEC is seeking a permanent injunction, disgorgement and penalties and charges Rogicki with violating the Investment Advisers Act and the Securities Exchange Act.
Adviser Faces Criminal Charges
In a parallel action, the Manhattan district attorney has brought criminal charges against Rogicki. He pled guilty to charges of grand larceny and money laundering. In exchange for his plea, he was promised a sentence of up to 7.5 years in state prison.
According to the DA’s office, he would also be required to pay restitution of $2.5 million and make a confession of judgment for approximately $6.7 million. His sentencing will take place in December 2017.
Have You Lost Money to Broker Misconduct?
If you believe you have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.
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