SEC Says Older Seniors Were Defrauded of $1.2M by Garden State Securities Broker
The U.S. Securities and Exchange Commission (SEC) filed civil charges against former Garden State Securities financial advisor Joseph Orazio DeGregorio. The previously registered broker, who worked at 14 firms in 14 years, is accused of defrauding four elderly investors of $1.2M.
He has now settled the Commission’s charges with disgorgement, interest, and a penalty to be determined later. The U.S. Attorney’s Office for the Eastern District of New York has filed parallel criminal charges.
Our investment fraud lawyers represent older clients throughout the U.S. in recouping their losses caused by elder investment fraud. If you suffered losses while working with ex-Garden State Securities broker Joseph DeGregorio, please contact us today at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com).
Former New Jersey Financial Advisor Accused of Ponzi-Like Scheme
According to the SEC’s complaint, the ex-Garden State Securities broker’s victims were customers aged 78 to 94. Between October 2015 and March 2021, DeGregorio allegedly persuaded them to invest $1.2M in two private companies —Blue Omega and Globotix, Inc —and a promissory note with a supposed 13% yearly return. Unfortunately, contends the regulator, the promissory note was “fake,” and the two companies didn’t conduct any actual business.
The SEC said that not only did the former Garden State Securities broker steal investors’ money for his own personal use, but also, he used some of their funds to repay them in a Ponzi scheme-like fashion. Disgorgement, prejudgment interest, and a civil penalty will be decided later.
Customer Disclosures Accuse Unsuitability and Negligence
Some of the other 14 disclosures on the BrokerCheck record for Joseph DeGregorio:
- September 2017: The Financial Industry Regulatory Authority (FINRA) issued an indefinite suspension after DeGregorio didn’t comply with an arbitration award/settlement agreement.
- December 2011: This unsuitability case was settled for $12,500.
- July 2011: This negligence case was concluded with a $90K arbitration award.
- March 2009: This unauthorized trading case was resolved with a $15K settlement.
- October 2007: This claim alleging unauthorized trading and unsuitability resulted in a $96,400 settlement.
Other broker-dealers where DeGregorio used to be registered include First Standard Financial, Chelsea Financial Services, MVP Financial, JP Turner, Meyers Associates, Mercer Capital, Synergy Investment Group, and many others.
Seasoned Investment Fraud Lawyers
Please call our broker-dealer negligence attorneys at (800) 259-9010 if you believe you suffered investment losses while working with the former Garden State Securities broker, Joseph DeGregorio. You can also talk to our New York broker negligence lawyers at (716) 261-3529.