U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19192 / April 19, 2005
Securities and Exchange Commission v. Joseph A. Ferona Jr., et al., 05 CV-621 (WM) (D. Col. 2005)
On April 6, 2005, United States District Court Judge Walker D. Miller issued a preliminary injunction against Joseph A. Ferona Jr. restraining and enjoining him from violating, or aiding and abetting, violations of Section 7(a) and 31(b) of the Investment Company Act, Section 203(a), 204, and Rule 204-2 of the Investment Advisers Act, and Section 5(c) of the Securities Act. The Court also ordered Mr. Ferona to provide an accounting of investor funds to the Commission by April 26, 2005.
The Commission's complaint alleges that Global Prosperity Fund is unlawfully operating as an unregistered investment company and that Ferona and Castle Rock Trading Company are unlawfully operating as unregistered investment advisers. The complaint alleges that until recently, Ferona and Global Prosperity Fund unlawfully offered unregistered securities for sale. Ferona offered interests in the Global Prosperity Fund on an Internet website. Ferona claimed to have $30-$35 million under management and advertised over 40% annual returns in each year from 2000-2003 for the Global Prosperity Fund. The complaint also alleges that Ferona, Castle Rock Trading, and the Global Prosperity Fund have not complied with their statutory duty to allow a compliance examination.