U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23472 / February 18, 2016
Securities and Exchange Commission v. Scott Valente and The ELIV Group, LLC, Civil Action No. 14-3974 (VB) (S.D.N.Y.)
SEC Obtains Final Judgments Against Scott Valente and the Eliv Group, LLC
The U.S. Securities and Exchange Commission announced that on February 17, 2016, Judge Vincent L. Briccetti of the United States District Court for the Southern District of New York entered final judgments against Defendants Scott Valente and his company, The ELIV Group, LLC. The final judgments enjoin defendants from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Valente's judgment further finds Valente liable for disgorgement of $8,200,579.69, and deems that amount satisfied by the criminal restitution order entered against Valente in the United States of America v. Scott Valente, No. 1:15-CR-124 (GLS) (N.D.N.Y.) ("Criminal Proceeding").
In its complaint filed on June 3, 2014, the Commission alleged that Valente and ELIV fraudulently raised more than $8 million from approximately 80 clients by falsely claiming they achieved consistent and outsized positive returns, among other misrepresentations. ELIV had in fact earned no positive results at all, instead sustaining consistent investment losses for three years. Meanwhile, Valente made substantial cash withdrawals of client funds and spent their money on his home improvements and mortgage payments as well as jewelry and a vacation condominium. Valente's unsuccessful trading strategies and misappropriations severely diluted the amount of client funds at ELIV.
Valente was criminally charged in the Criminal Proceeding and was sentenced to a prison term of twenty years.
For further information, please see Litigation Release Nos. 23012 (June 3, 2014) and 23023 (June 16, 2014).