U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18577 / February 17, 2004
Securities and Exchange Commission v. EPG Global Private Equity Fund et. al., Civil Action No. 04-60183-CIV-COHN (S.D. Fla.)(complaint filed February 10, 2004)
FORMER REGISTERED REPRESENTATIVE TO PAY $50,000 TO SETTLE FRAUD CASE ARISING FROM AN UNREGISTERED OFFERING
The Securities and Exchange Commission (Commission) announced today that it filed a settled civil injunctive action against EPG Global Private Equity Fund, Ltd. (EPG), a purported "principal guaranteed" hedge fund, and its founder Anthony F. Giordano (Giordano). EPG, with its registered office in Boca Raton, Florida, and Giordano, who also resides in Boca Raton, Florida, consented, without admitting or denying the allegations in the Commission's Complaint, to the entry of a Final Judgment of Permanent Injunction and Other Relief (Final Judgment).
According to the Commission's Complaint, Giordano, a former registered representative barred by the National Association of Securities Dealers (NASD), attempted to raise investor funds by placing a series of national newspaper advertisements regarding EPG and by mailing EPG offering materials to potential investors. The Commission's Complaint also alleges that, in connection with the offering, EPG and Giordano made numerous material misrepresentations and omissions to potential investors about the guaranteed nature of the investment, the returns that EPG investments would generate, the value of the assets that Giordano had under management, and Giordano's disciplinary history with the NASD.
The Final Judgment permanently enjoins EPG from violating Sections 5(c), 17(a)(1) and 17(a)(3) of the Securities Act of 1933 (Securities Act) and enjoins Giordano from violating Sections 5(c), 17(a)(1) and 17(a)(3) of the Securities Act and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (Advisers Act). Giordano will also pay $50,000 in civil penalties.