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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES COMMODITY EXCHANGE TROPIANO EXCHANGE COMMISSION FUTURES TRADING EXCHANGE ACT COMPLAINT ACCOUNT INVESTOR FUNDS DEFENDANT VIOLATIONS JERSEY CONTROL PERSONAL ASSETS PROVISIONS COMMODITY POOL OPERATOR DISTRICT PRELIMINARY INJUNCTION CIVIL ACTION MONEY PURPOSE INVESTMENT CONTRACTS DEFRAUD INVESTORS ATTORNEY FREEZES ENJOINS BROKER-DEALER UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
LITIGATION RELEASE NO. 14778 / January 11, 1996
SECURITIES AND EXCHANGE COMMISSION and COMMODITY FUTURES TRADING
COMMISSION v. MICHAEL TROPIANO d/b/a ARDMORE FINANCIAL SERVICES,
Civil Action No. 96-CV-228 (JEI)(D.N.J.)
The Securities and Exchange Commission and the Commodity
Futures Trading Commission today filed a joint civil injunctive
action in the United States District Court for the District of
New Jersey (Camden Division) against Michael Tropiano d/b/a
Ardmore Financial Services, alleging violations of the antifraud,
securities registration, broker-dealer registration, and
commodity pool operator registration provisions of the Securities
Act of 1933, Securities Exchange Act of 1934, and Commodity
Exchange Act. Simultaneously with the filing of the action, the
defendant consented to the entry of a Preliminary Injunction
which enjoins him from engaging in violations of those
provisions, freezes his personal assets as well as all investor
funds under his possession or control, and orders him to account
for the use of investor funds. In addition, the U.S. Attorney
for the District of New Jersey today filed a criminal complaint
charging Tropiano with mail fraud for the activities underlying
this civil action.
The Complaint alleges that the defendant, a resident of
Haddonfield, New Jersey, has engaged in a scheme to defraud
investors by offering and selling securities in the form of
investment contracts in pools purportedly formed for the purpose
of funding commodity futures trading. From 1989 through 1995,
the defendant raised approximately $2.9 million from 118
investors. The amounts invested ranged from $2000 to more than
$250,000. After initially conducting some commodity futures
trading, the defendant in 1992 ceased all trading activity.
Tropiano thereafter generated false account statements reflecting
fictitious profitable trades and continued to raise money from
investors by falsely representing that he had engaged in
profitable trading.
According to the Complaint, Tropiano deposited the invested
money into bank accounts he controlled, from which he
misappropriated approximately $1.5 million for his own use.
Tropiano failed to register the investment contract securities
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