SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16327 / October 5, 1999
SECURITIES AND EXCHANGE COMMISSION v. MARLON D. TROPEANO, DAVID BARROSO, JR., GOLF EMPORIUM CORPORATION, ISABEL MUNOZ, AND V.M.C. HOLDINGS INC., 99 Civ. 10260 (JSR) (S.D.N.Y.)
The Commission announced that today it filed a Complaint in the United States District Court for the Southern District of New York charging two individuals, and one individual and two corporations as relief defendants, in connection with a fraudulent scheme through which thousands of dollars in securities were transferred and sold without authorization, and the proceeds diverted.
Named in the Complaint filed today are:
Marlon D. Tropeano, a 30 year-old resident of Brooklyn, New York; and
David Barroso, Jr., a 34 year-old resident of Forest Hills, New York.
The Complaint alleges that on three occasions in March 1998, Marlon D. Tropeano - assisted on one occasion by David Barroso, Jr. - used forged documents to cause the unauthorized transfer of customer accounts from Briarwood Investment Counsel, Inc. ("Briarwood"), a registered broker dealer at which Marlon D. Tropeano was a registered representative, to other broker dealers. Marlon D. Tropeano then caused securities to be sold in those accounts without authorization, and diverted over $115,000 of the proceeds of the sales to relief defendants. The complaint further alleges that from October 1997 to March 1998, Marlon D. Tropeano used forged documents to divert $32,000 from another Briarwood customer account, $29,000 of which went to relief defendants.
As a result of the foregoing, the Commission alleges that Marlon D. Tropeano and David Barroso, Jr. committed securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b) and Rule 10b-5, 17 C.F.R. § 240.10b-5. The Commission seeks a Final Judgment (i) enjoining Marlon D. Tropeano and David Barroso, Jr. from future violations of the above-cited provisions; (ii) requiring disgorgement from Marlon D. Tropeano, David Barroso, Jr., Golf Emporium Corporation, Isabel Munoz, and V.M.C. Holdings Inc. of all of ill-gotten gains as a result of Marlon D. Tropeano's and David Barroso Jr.'s fraudulent scheme, plus pre-judgment interest; and (iii) assessing civil penalties against Marlon D. Tropeano and David Barroso Jr.
The litigation is pending as to all defendants.