U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19167/ April 5, 2005
Securities and Exchange Commission v. Joseph A. Ferona Jr., et al., 05 CV-621 (WM) (D. Col. 2005)
The Commission filed an action in the United States District Court for the District of Colorado today seeking a temporary restraining order against Joseph A. Ferona Jr. ("Ferona"), Castle Rock Trading Company, and the Global Prosperity Fund. The complaint alleges that until recently, Ferona offered interests in the Global Prosperity Fund on an Internet website. Ferona claimed to have $30-$35 million under management and advertised over 40% annual returns in each year from 2000-2003 for the Global Prosperity Fund.
The complaint alleges that Global Prosperity Fund is unlawfully operating as an unregistered investment company and that Ferona and Castle Rock Trading Company are unlawfully operating as unregistered investment advisers. The complaint also alleges that Ferona, Castle Rock Trading, and the Global Prosperity Fund have not complied with their statutory duty to allow a compliance examination and that Ferona and Global Prosperity Fund unlawfully offered unregistered securities for sale.
The complaint seeks a temporary restraining order against Ferona, Castle Rock Trading Company, and the Global Prosperity Fund enjoining them from violating Section 7(a) and 31(b) of the Investment Company Act, Section 203(a), 204, and Rule 204-2 of the Investment Advisers Act, and Section 5(c) of the Securities Act. In addition, the action seeks preliminary and permanent injunctions, civil penalties, and an accounting of investor funds.