U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20027 / March 2, 2007
SEC v. Paul J. Silvester et al., Civil Action No. 3:00 CV 1941 (EBB) (D. Conn.)
Final Judgment by Consent Entered as to Charles B. Spadoni
The Securities and Exchange Commission announced today that on February 27, 2007, the Connecticut federal district court entered a final judgment by consent in a fraud action filed by the Commission against Charles B. Spadoni, the former vice president and general counsel of Triumph Capital Group, Inc. ("Triumph"), an investment firm headquartered in Boston, Massachusetts. In the complaint filed against Spadoni and ten other defendants, the Commission had alleged that Paul J. Silvester, the former Treasurer of the State of Connecticut, agreed to invest $200 million of state pension funds with Triumph in November 1998; in return, Triumph, through Spadoni and the firm's chairman, agreed to provide consulting contracts valued at approximately $1 million each to two of Silvester's friends.
On October 10, 2000, in a case entitled U.S. v. Triumph Capital Group, Inc. et al, Criminal No. 3:00CR-217 (EBB), the United States Attorney for the District of Connecticut indicted Spadoni and others for their roles in the scheme. On July 16, 2003, after a trial in this criminal action, a jury found Spadoni guilty of various charges, including racketeering and racketeering conspiracy concerning acts of bribery and obstruction of justice, theft/bribery concerning programs receiving federal funds, and wire fraud/theft of honest services. On October 27, 2006, the court sentenced Spadoni to 36 months imprisonment and ordered him to pay a fine of $50,000.
In the Commission's matter against him, Spadoni had been charged with primary violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and with aiding and abetting Triumph's violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Without admitting or denying the allegations contained in the Commission's complaint, Spadoni consented to the entry of a final judgment against him, pursuant to which he agreed to a permanent injunction against future violations of these same provisions.
On September 1, 2004, the Commission permanently barred Spadoni from associating with any broker, dealer, or investment adviser, and he had been forthwith suspended on November 17, 2006 from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice.
For further information, see Litigation Release Numbers 16759 (October 10, 2000), 16834 (December 19, 2000), 18436 (October 30, 2003), 18460 (November 17, 2003), 18461 (November 17, 2003), 19241 (May 31, 2005) and 19566 (February 15, 2006), and Administrative Proceeding Release Numbers 34-50300 (September 1, 2004) and 34-54774 (November 17, 2006).