United States Securities and Exchange Commission
Litigation Release No. 18071 / April 4, 2003
(United States District Court for the Southern District of New York, Case
No. 01-CV-8356 (WHP), filed September 6, 2001)
Commission Settles Fraud Charges Against Robert C. Ingardia
The Securities and Exchange Commission ("Commission") announced that,
on March 5, 2003, the Honorable William H. Pauley, United States
District Judge for the Southern District of New York, entered, by
consent, a final judgment against Robert C. Ingardia, a former New
York City-based registered representative. On September 6, 2001, in
the case of , Case No. 01-CV-8356 (S.D.N.Y.) (WHP), the Commission
sought and obtained a temporary restraining order prohibiting Ingardia
from violating the antifraud provisions of the federal securities
laws. In its Complaint, the Commission alleged that, from at least
June through September 2001, Ingardia, who had been employed at
several broker-dealers including Joseph Stevens & Co. and the now
defunct Mason Hill & Co., began making telephone calls to several
other brokerage firms, including Fidelity Investments, Charles Schwab
& Co. and Brown & Co., in which he assumed the identity of his present
and former Joseph Stevens and Mason Hill customers. The Complaint
further alleged that, after he had successfully assumed the identity
of his customers, Ingardia would generally, without authorization,
liquidate the accounts by placing unauthorized orders to sell all or
many of the stock positions it contained. Using the cash proceeds of
the liquidation, Ingardia would then place unauthorized orders to buy
large quantities of penny stock in either Converge Global, Inc.
("Converge"), a Utah corporation formerly headquartered in Santa
Monica, California or Equity Technologies & Resources, Inc. ("ETCR"),
a Delaware corporation headquartered in Lexington, Kentucky. On
November 8, 2001, the Commission obtained a preliminary injunction
restraining Ingardia from violating the antifraud provisions of the
federal securities laws.
The Commission's Complaint was based on some of the same underlying
facts as a criminal complaint filed against Ingardia by the United
States Attorney's Office for the Southern District of New York on
August 31, 2001. On February 4, 2002, in the case of , Crim.
Information No. 02 Cr. 137 (S.D.N.Y.), Ingardia pled guilty to one
count of conspiracy to commit securities fraud, mail fraud and wire
fraud, in violation of Title 18 United States Code, Section 371, and
to three counts of securities fraud in connection with trading in
Converge, ETCR and Safe Idea, Inc. common stocks, in violation of
Title 15 United States Code, Sections 78j(b) and 78ff and Title 17
Code of Federal Regulations, Section 240.10b-5. Ingardia was
SNIPPETS:
United States Securities and Exchange Commission
(United States District Court for the Southern District of New York, Case No. 01-CV-8356
Commission Settles Fraud Charges Against Robert C. Ingardia
The Securities and Exchange Commission announced that, on March 5, 2003, the Honorable
On September 6, 2001, in the case of, Case No. 01-CV-8356 (WHP), the Commission sought and
In its Complaint, the Commission alleged that, from at least June through September 2001,
The Complaint further alleged that, after he had successfully assumed the identity of his
Using the cash proceeds of the liquidation, Ingardia would then place unauthorized orders to
On November 8, 2001, the Commission obtained a preliminary injunction restraining Ingardia
137, Ingardia pled guilty to one count of conspiracy to commit securities fraud, mail fraud
Without admitting or denying the Commission's allegations against him, Ingardia consented to
Without admitting or denying the Commission's findings, Ingardia consented to the entry of
For further information, see Litigation Release Nos.
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