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  • SEC Press Release Bivona PDF

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    Mark Jaffe
    35 vizualizări2 pagini
    Fraud charges and asset freezes obtained in a case filed against a fund manager and two firms he controls that marketed shares in promising preIPO tech companies in the Bay Area. The SEC alleges they stole $5. Million from investors and diverted millions more to other improper and undisclosed uses.

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    Fraud charges and asset freezes obtained in a case filed against a fund manager and two firms he controls that marketed shares in promising preIPO tech companies in the Bay Area. The SEC alleges they stole $5. Million from investors and diverted millions more to other improper and undisclosed uses.

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    © All Rights Reserved
    Descărcați ca PDF, TXT sau citiți online pe Scribd
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    35 vizualizări2 pagini

    SEC Press Release Bivona PDF

    Încărcat de

    Mark Jaffe
    Fraud charges and asset freezes obtained in a case filed against a fund manager and two firms he controls that marketed shares in promising preIPO tech companies in the Bay Area. The SEC alleges they stole $5. Million from investors and diverted millions more to other improper and undisclosed uses.

    Drepturi de autor:

    © All Rights Reserved
    Descărcați ca PDF, TXT sau citiți online pe Scribd
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    U.S.

    SECURITIESANDEXCHANGECOMMISSION
    LitigationReleaseNo.23501/March25,2016
    SecuritiesandExchangeCommissionv.JohnV.Bivona,etal.,Civil
    ActionNo.3:16cv1386(U.S.DistrictCourtfortheNorthern
    DistrictofCalifornia)
    TheSecuritiesandExchangeCommissiontodayannouncedfraudchargesandassetfreezesobtainedina
    casefiledagainstaNewJerseybasedfundmanagerandtwofirmshecontrolsthatmarketedsharesin
    promisingpreIPOtechcompaniesintheBayArea.TheSECallegestheystole$5.7millionfrom
    investorsanddivertedmillionsmoretootherimproperandundiscloseduses.
    Specifically,theSECallegesthatJohnBivonausedmoneyraisedthroughSaddleRiverAdvisorsand
    SRAManagementAssociatestopayoffearlierinvestors,propupotherfunds,andpayfamilyrelated
    expenses.Hesecretlysteeredthelion'sshareofmisappropriatedfundstohisnephewFrankMazzola,
    whowasbarredfromthesecuritiesindustryinapriorSECenforcementactionandischargedalongwith
    BivonaandhisfirmsinthecomplaintfiledMondayinfederaldistrictcourtinCalifornia.
    AccordingtotheSEC'scomplaint:
    Bivonaraisedmorethan$53millionfrominvestors,andthemoneyhewassiphoningawayfor
    undiscloseduseslefthisfirmscontinuouslyshortofthecashneededtobuythesharespromisedto
    investors.

    Bivonakepttheschemegoingbyindiscriminatelytransferringmoneyamongmorethanadozen
    bankaccountsassociatedwithanarrayofdifferententities.

    BivonausedinvestormoneytopayMazzola'screditcardbills,incometaxes,acarloan,attorney
    fees,andthemortgageonaJerseyShorevacationhome.

    Investorsweretoldtheywouldreceivefinancialstatementsforthefundsonanannualbasis.But
    nofinancialstatementswereeverprepared.

    BivonaandMazzolafailedtoregistertheofferingwiththeSECandtherebyviolatedthebadactor
    rulesofthefederalsecuritieslaws,whichprohibitcompaniesfromrelyingonregistration
    exemptionsunderRule506ofRegulationDifapromoterorinvestmentmanagerlikeMazzolahas
    adisqualifyingeventlikehisfraudbasedinjunction.
    Investorscanlearnmoreabouttherisksinvolvedwithinvestinginunregisteredofferingsbyreadingsuch
    SECinvestorbulletinsas10RedFlagsThatAnUnregisteredOfferingMayBeAScamandPrivate
    PlacementsUnderRegulationD.
    TheSECchargesBivona,SaddleRiverAdvisors,andSRAManagementAssociateswithviolating
    Sections206(1),(2),and(4)oftheInvestmentAdvisersActof1940("AdvisersAct")andRule206(4)8
    thereunder,Section17(a)oftheSecuritiesActof1933("SecuritiesAct"),andSection10(b)ofthe
    SecuritiesExchangeActof1934("ExchangeAct")andRule10b5thereunder.TheSECalsocharges
    BivonawithaidingandabettingSaddleRiverAdvisorsandSRAManagementAssociatesinviolating

    theseprovisions.TheSECchargesMazzolawithviolatingthetermsofhisbarorder,Section203(f)of
    theAdvisersAct,andSection15(b)(6)(B)(i)oftheExchangeAct,Bivonawithaidingandabetting
    Mazzola'sviolations,andBivona,SaddleRiverAdvisors,andSRAManagementwithviolatingSection
    203(f)oftheAdvisersAct.Finally,theSECchargesBivona,Mazzola,SaddleRiverAdvisors,andSRA
    ManagementAssociateswithviolatingSection5(a)and(c)oftheSecuritiesAct,andtheSaddleRiver
    AdvisorsandSRAManagementwithviolatingSection15(a)oftheExchangeAct.
    TheSEC'scomplaintseekspermanentinjunctionsplusdisgorgementwithprejudgmentinterestand
    monetarypenaltiesfromBivonaandthefirmsaswellasMazzola.TheSECobtainedacourtorderto
    freezetheassetsofFrankMazzolaandhiswife,areliefdefendant,andorderingtheappointmentofan
    independentmonitoroverSaddleRiverAdvisors,SRAManagement,theSRAFunds,andotheraffiliated
    entities.TheorderalsopreliminarilyenjoinsBivona,SaddleRiverAdvisors,andSRAManagement
    Associatesfromviolatingtheantifraudprovisionsofthefederalsecuritieslawsandraisingmoneyfrom
    investors.
    TheSEC'sinvestigationwasconductedbyJessicaW.ChanandEllenChenoftheSanFranciscooffice,
    andthecasewassupervisedbyJeremyE.Pendrey.TheSEC'slitigationwillbeledbyJohnYun,Marc
    Katz,andMs.Chan.

    Source: U.S. Securities & Exchange Commission

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