SEC v. Paul J. Silvester; Charles B. Spadoni; and Triumph Capital Group, Inc., No. LR-20027, District of Connecticut (Mar. 2, 2007) — Press Release
raw: Paul J. Silvester et al.
Paul J. Silvester et al., No. LR-20027 (Mar. 2, 2007)
Charles B. Spadoni, former general counsel of Triumph Capital Group, orchestrated a bribery scheme to secure $200 million in Connecticut state pension investments for Triumph by arranging $1 million consulting contracts for friends of State Treasurer Paul J. Silvester, leading to criminal conviction, 36 months in prison, a $50,000 fine, and a permanent SEC injunction and bar from the financial industry.
Charles B. Spadoni, former vice president and general counsel of Triumph Capital Group, was convicted in 2003 on criminal charges including racketeering, wire fraud, theft of honest services, and bribery for arranging $1 million consulting contracts for two friends of Connecticut State Treasurer Paul J. Silvester in exchange for $200 million in state pension fund investments. He was sentenced to 36 months in prison and ordered to pay a $50,000 fine. In the related SEC civil action, Spadoni consented to a permanent injunction prohibiting future violations of securities anti-fraud laws and aiding and abetting investment adviser misconduct, and was permanently barred from associating with brokers or investment advisers and suspended from practicing before the SEC.
Charles B. Spadoni, former vice president and general counsel of Triumph Capital Group, played a central role in a bribery scheme in which Triumph secured $200 million in Connecticut state pension fund investments from Treasurer Paul J. Silvester in November 1998 by promising and delivering $1 million consulting contracts to two of Silvester’s friends. In October 2000, Spadoni and others were indicted criminally, and in July 2003, a jury found him guilty of racketeering, racketeering conspiracy, bribery, wire fraud, and theft of honest services. On October 27, 2006, he was sentenced to 36 months in federal prison and ordered to pay a $50,000 fine. Separately, the SEC charged Spadoni with violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, Rule 10b-5, and aiding and abetting violations of the Investment Advisers Act. Without admitting or denying the allegations, Spadoni consented to a final judgment imposing a permanent injunction against future securities law violations. Additionally, on September 1, 2004, the SEC permanently barred him from associating with any broker, dealer, or investment adviser, and on November 17, 2006, he was suspended from practicing as an attorney before the Commission under Rule 102(e)(2).
Exhibits & Attached Documents (1)
Extracted insights
- $200.00M $200 million $100M–$1B
- $1.00M $1 million $1M–$10M
- $50K $50,000 $10K–$100K
- location Boston, Massachusetts
- SEC filed a fraud action against Charles B. Spadoni, former vice president and general counsel of Triumph Capital Group, Inc.
- Connecticut federal district court entered a final judgment by consent against Charles B. Spadoni
- Charles B. Spadoni was former vice president of Triumph Capital Group, Inc.
- Triumph Capital Group, Inc. is headquartered in Boston, Massachusetts
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20027 / March 2, 2007 SEC v. Paul J. Silvester et al., Civil Action No. 3:00 CV 1941 (EBB) (D. Conn.) Final Judgment by Consent Entered as to Charles B. Spadoni The Securities and Exchange Commission announced today that on February 27, 2007, the Connecticut federal district court entered a final judgment by consent in a fraud action filed by the Commission against Charles B. Spadoni, the former vice president and general counsel of Triumph Capital Group, Inc. ("Triumph"), an investment firm headquartered in Boston, Massachusetts. In the complaint filed against Spadoni and ten other defendants, the Commission had alleged that Paul J. Silvester, the former Treasurer of the State of Connecticut, agreed to invest $200 million of state pension funds with Triumph in November 1998; in return, Triumph, through Spadoni and the firm's chairman, agreed to provide consulting contracts valued at approximately $1 million each to two of Silvester's friends. On October 10, 2000, in a case entitled U.S. v. Triumph Capital Group, Inc. et al, Criminal No. 3:00CR-217 (EBB), the United States Attorney for the District of Connecticut indicted Spadoni and others for their roles in the scheme. On July 16, 2003, after a trial in this criminal action, a jury found Spadoni guilty of various charges, including racketeering and racketeering conspiracy concerning acts of bribery and obstruction of justice, theft/bribery concerning programs receiving federal funds, and wire fraud/theft of honest services. On October 27, 2006, the court sentenced Spadoni to 36 months imprisonment and ordered him to pay a fine of $50,000. In the Commission's matter against him, Spadoni had been charged with primary violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and with aiding and abetting Triumph's violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Without admitting or denying the allegations contained in the Commission's complaint, Spadoni consented to the entry of a final judgment against him, pursuant to which he agreed to a permanent injunction against future violations of these same provisions. On September 1, 2004, the Commission permanently barred Spadoni from associating with any broker, dealer, or investment adviser, and he had been forthwith suspended on November 17, 2006 from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. For further information, see Litigation Release Numbers 16759 (October 10, 2000), 16834 (December 19, 2000), 18436 (October 30, 2003), 18460 (November 17, 2003), 18461 (November 17, 2003), 19241 (May 31, 2005) and 19566 (February 15, 2006), and Administrative Proceeding Release Numbers 34-50300 (September 1, 2004) and 34-54774 (November 17, 2006).U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20027 / March 2, 2007 SEC v. Paul J. Silvester et al., Civil Action No. 3:00 CV 1941 (EBB) (D. Conn.) Final Judgment by Consent Entered as to Charles B. Spadoni The Securities and Exchange Commission announced today that on February 27, 2007, the Connecticut federal district court entered a final judgment by consent in a fraud action filed by the Commission against Charles B. Spadoni, the former vice president and general counsel of Triumph Capital Group, Inc. ("Triumph"), an investment firm headquartered in Boston, Massachusetts. In the complaint filed against Spadoni and ten other defendants, the Commission had alleged that Paul J. Silvester, the former Treasurer of the State of Connecticut, agreed to invest $200 million of state pension funds with Triumph in November 1998; in return, Triumph, through Spadoni and the firm's chairman, agreed to provide consulting contracts valued at approximately $1 million each to two of Silvester's friends. On October 10, 2000, in a case entitled U.S. v. Triumph Capital Group, Inc. et al, Criminal No. 3:00CR-217 (EBB), the United States Attorney for the District of Connecticut indicted Spadoni and others for their roles in the scheme. On July 16, 2003, after a trial in this criminal action, a jury found Spadoni guilty of various charges, including racketeering and racketeering conspiracy concerning acts of bribery and obstruction of justice, theft/bribery concerning programs receiving federal funds, and wire fraud/theft of honest services. On October 27, 2006, the court sentenced Spadoni to 36 months imprisonment and ordered him to pay a fine of $50,000. In the Commission's matter against him, Spadoni had been charged with primary violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and with aiding and abetting Triumph's violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Without admitting or denying the allegations contained in the Commission's complaint, Spadoni consented to the entry of a final judgment against him, pursuant to which he agreed to a permanent injunction against future violations of these same provisions. On September 1, 2004, the Commission permanently barred Spadoni from associating with any broker, dealer, or investment adviser, and he had been forthwith suspended on November 17, 2006 from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice. For further information, see Litigation Release Numbers 16759 (October 10, 2000), 16834 (December 19, 2000), 18436 (October 30, 2003), 18460 (November 17, 2003), 18461 (November 17, 2003), 19241 (May 31, 2005) and 19566 (February 15, 2006), and Administrative Proceeding Release Numbers 34-50300 (September 1, 2004) and 34-54774 (November 17, 2006).