Court Prohibits Former Ramapo Town Supervisor from Participating in Muni Offerings and Orders Him to Pay Penalties
Litigation Release No. 24351 / November 15, 2018
Securities and Exchange Commission v. Town of Ramapo, et al., No. 16-cv-2779 (S.D.N.Y. filed Apr. 14, 2016)
A federal court has prohibited the former Town Supervisor of the Town of Ramapo, N.Y. from participating in offerings of municipal securities and ordered him to pay $327,000 in civil penalties in a fraud action brought by the Securities and Exchange Commission. In April 2016, the SEC charged the former Ramapo Town Supervisor, Christopher P. St. Lawrence, with fraud for hiding a deteriorating financial situation from their municipal bond investors. The SEC also charged the town, its local development corporation, and three other town officials. The town and the development corporation agreed to settle the SEC's charges in 2017, and the three other town officials agreed to settle in 2018.
The final judgment against St. Lawrence, entered on October 22, 2018 by the Honorable Cathy Seibel of the U.S. District Court for the Southern District of New York, also permanently enjoined the former supervisor, Christopher P. St. Lawrence, from violating the antifraud provisions 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.
The court's entry of judgment against St. Lawrence ends this litigation in its entirety.