Securities and Exchange Commission Obtains Final Judgment Against Connecticut Investment Adviser Who Misappropriated Funds from Clients

Litigation Release No. 25033 / February 22, 2021

The Securities and Exchange Commission today announced the entry of a final judgment against former Connecticut investment adviser James T. Booth.

The SEC complaint, filed on September 30, 2019, alleges that Booth operated a multi-million dollar Ponzi scheme that bilked over three dozen retail investors, including senior citizens saving for retirement, of $4 million in assets.

In a parallel action by the U.S. Attorney's Office for the Southern District of New York, Booth pleaded guilty to one count of securities fraud. On November 18, 2020, Booth was sentenced to 42 months in prison followed by three years of supervised probation, and was ordered to pay $4,969,689 in forfeiture.

On February 19, 2021, the U.S. District Court for the District of Connecticut entered a final judgment by consent against Booth in the SEC's action. Pursuant to the final judgment, Booth was permanently enjoined from future violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

The SEC previously issued an order barring Booth from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent, or nationally recognized statistical rating organization, as well as participating in the offering of a penny stock.

The SEC's case is being handled by Rory Alex, Robert Baker, Jennifer Cardello, William Donahue, and Martin Healey of the SEC's Boston Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Department of Homeland Security.