The Securities and Exchange Commission has charged a chief compliance officer with defrauding a non-profit charitable foundation out of $9 million.
The SEC alleged that John Rogicki, former managing director and chief compliance officer of Train Babcock Advisors (TBA), had been stealing funds from the charity for 12 years to purchase real estate and pay for his own lavish lifestyle. The charitable foundation was established by an elderly woman to donate her estate to health and education causes.
Rogicki had served not only as investment adviser to the charitable foundation, but also as its president and a trustee. He allegedly took advantage of his roles by liquidating securities positions in the foundation's advisory account and transferring the money for his personal benefit.
“Rogicki’s fraud and betrayal of his client’s trust were anathema to his legal obligations and responsibilities as an investment adviser,” the SEC complaint stated. “Through this action, the Commission seeks redress for Rogicki’s violations of the federal securities laws.”
The SEC’s complaint, filed in federal district court in Manhattan, charges Rogicki with violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks a permanent injunction, disgorgement and prejudgment interest, and penalties against Rogicki.
In a parallel action, the Manhattan District Attorney brought criminal charges against Rogicki.