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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21146 / July 22, 2009

Securities and Exchange Commission v. Christopher Castaldo, et al., 08 Civ. 8397 (JSR) (S.D.N.Y.)

JURY FINDS VISION SECURITIES, DANIEL JAMES GALLAGHER, AND CHRISTOPHER CASTALDO LIABLE FOR VIOLATING OR AIDING AND ABETTING VIOLATIONS OF BROKER LICENSING AND REGISTRATION REQUIREMENTS

On July 20, 2009, a federal jury returned a verdict in the SEC's favor against Daniel James Gallagher and Vision Securities, a registered broker-dealer he controlled, and a verdict partially in the SEC's favor against Christopher Castaldo. After a six-day trial before U.S. District Court Judge Jed S. Rakoff, the jury found Vision liable on the SEC's claim that Castaldo acted as an unlicensed broker with respect to an offering of securities and did so in close, controlling association with Vision, and that Castaldo and Gallagher knowingly assisted Vision in the violation. The jury found in Castaldo's favor on charges that he acted as an unregistered broker with respect to two other securities offerings not involving Vision or Gallagher.

The SEC's complaint alleged that Vision violated Sections 15(b)(7) and of the Securities and Exchange Act of 1934 ("Exchange Act") and Rule 15b-7 thereunder, and that Gallagher and Castaldo were liable pursuant to Section 20(e) of the Exchange Act as aiders and abettors of Vision's violation. The SEC's complaint also alleged that Castaldo violated Section 15(a) of the Exchange Act with respect to two other securities offerings.

The Court has scheduled a hearing to consider appropriate relief against the defendants on July 31.

For further information, see Litigation Release No. 20764 (October 1, 2008)

 

http://www.sec.gov/litigation/litreleases/2009/lr21146.htm


Modified: 07/22/2009