Final Judgment Against Robert DePalo, a Broker Charged with Stealing from Investors
On February 5, 2019, the SEC obtained a final judgment against a New York-based broker, Robert DePalo who was charged with orchestrating a $6.5 million offering fraud.
In May 2015, the SEC charged Robert DePalo with defrauding over twenty investors by misrepresenting the value of their investments and use of their funds, including by sending the first $2.3 million of investor funds to his personal bank account. The SEC also alleged that Robert DePalo made false statements to SEC examiners in an attempt to conceal the fraud.
Based on conduct similar to that alleged in the SEC’s complaint, a New York State Supreme Court jury found Robert DePalo guilty of criminal charges, which included grand larceny, money laundering, schemes to defraud, and other charges. Robert DePalo was sentenced to 7-21 years in state prison, and ordered to pay full restitution to defrauded investors.
The SEC’s final judgment, entered on February 5, 2019, permanently enjoins Robert DePalo from violating the antifraud provisions of Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933, and orders him to pay $6.5 million in disgorgement, which was deemed satisfied by the restitution order in the criminal case. On March 18, 2019, the SEC issued an order barring Robert DePalo from the securities industry. The SEC also obtained final judgments against Robert DePalo’s associates and entities controlled by Robert DePalo.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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