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U.S. Securities and Exchange Commission


Litigation Release No. 23970 / October 19, 2017

Securities and Exchange Commission v. John H. Rogicki, No.17-civ-08071(S.D.N.Y., filed October 19, 2017)

Investment Adviser Charged With Stealing $9 Million From Charitable Foundation

The U.S. Securities and Exchange Commission today charged a New York-based investment adviser with defrauding a non-profit charitable foundation out of $9 million.

The SEC alleges that John Rogicki, managing director and chief compliance officer of Train Babcock Advisors LLC, has been stealing funds from the charity for a dozen years to purchase real estate and pay for his own lavish lifestyle. According to the SEC's complaint, the charitable foundation was established by an elderly woman to donate her estate to health and education causes. Rogicki has served not only as investment adviser to the charitable foundation but also as its president and a trustee, and 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.

In a parallel action, the Manhattan District Attorney brought criminal charges against Rogicki.

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.

The SEC's investigation, which is continuing, has been conducted by Katherine Bromberg, Jon Daniels, Neil Hendelman, Dugan Bliss and Valerie A. Szczepanik of the New York Regional Office. The case is being supervised by Lara S. Mehraban. The SEC's litigation will be led by Mr. Bliss, Ms. Bromberg, and Mr. Daniels. An SEC examination that led to the investigation was conducted by investment adviser examiners in the New York office. The SEC appreciates the assistance of the Manhattan District Attorney's Office.

SEC Complaint



Modified: 10/19/2017