Press Release: SEC Charges California Investment Adviser With Impersonating Clients to Steal From Accounts
Charles Trigilio, a California investment adviser, impersonated clients to steal over $3.4 million from their brokerage accounts, used a Ponzi scheme to conceal $2 million in trading losses, and paid fake returns with new investor funds, leading the SEC to charge him with securities fraud and seek asset freezes and disgorgement.
The SEC charged Charles Trigilio with violating federal antifraud and investment adviser laws after he stole over $3.4 million from at least 96 client accounts between 2003 and 2007 by impersonating investors and transferring funds to accounts in his and his wife Razel’s names. He concealed nearly $2 million in options trading losses from January 2006 to September 2007 by providing falsified account statements and preventing clients from contacting brokers directly, while using new investor money to pay false returns in a classic Ponzi scheme. The SEC seeks injunctions, disgorgement of all ill-gotten gains—including funds paid to Razel Trigilio—civil penalties, and a freeze on Trigilio’s and his wife’s assets to preserve remaining investor funds.
Charles Trigilio, a California investment adviser, orchestrated a sophisticated fraud by impersonating clients to gain unauthorized control over at least 96 brokerage accounts since 2003, using their personal information to make trades and transfer funds without their knowledge. He misappropriated over $3.4 million from investor accounts, funneling the money into bank accounts held in his name and his wife Razel Trigilio’s name to finance his lifestyle. Trigilio falsely marketed his strategy as 'risk-free' options trading while secretly incurring nearly $2 million in losses between January 2006 and September 2007, which he concealed by fabricating account statements and prohibiting clients from directly contacting their brokers. To maintain the illusion of profitability, he used funds from new investors to pay promised returns to earlier clients, a hallmark of a Ponzi scheme. The SEC charged him with violating federal antifraud and investment adviser provisions, seeking preliminary and permanent injunctions, disgorgement of all ill-gotten gains—including funds paid to his wife—and civil penalties. The Commission also requested an emergency court order to freeze Trigilio’s and Razel’s assets and temporarily prohibit him from further trading in client accounts to preserve any remaining investor funds. This case underscores the dangers of entrusting financial control to advisers who isolate clients from direct access to their accounts and promise guaranteed returns.
Extracted insights
- $3.40M $3.4 million $1M–$10M
- $3.10M $3.1 million $1M–$10M
- $2.00M $2 million $1M–$10M
- person charles trigilio
- person razel trigilio
- agency Securities and Exchange Commission
- SEC filed fraud charges against Charles Trigilio
- Charles Trigilio withdrew $3.4 Million
- Charles Trigilio misappropriated $3.1 Million from investor accounts
- Charles Trigilio managed at least 96 brokerage accounts
- Charles Trigilio incurred nearly $2 Million in trading losses between January 2006 and September 2007
- Charles Trigilio violated antifraud and investment advisory provisions of federal securities laws
- Charles Trigilio impersonated clients to steal from accounts
- Razel Trigilio received thousands of dollars in investors' money
- SEC seeks disgorgement and civil penalties against Charles Trigilio
- SEC seeks asset freeze of Charles Trigilio and Razel Trigilio
SEC Charges California Investment Adviser With Impersonating Clients to Steal From Accounts FOR IMMEDIATE RELEASE 2007-206 Washington, D.C., Sept. 27, 2007 - The Securities and Exchange Commission today filed fraud charges against an Arcadia, Calif., investment adviser who misappropriated millions of dollars from investors to whom he had promised huge returns through "no risk" options trading. According to the Commission, investment adviser Charles Trigilio withdrew more than $3.4 million from his clients' accounts for his personal use, transferred money from one client to another in a classic Ponzi scheme tactic, and gave clients false information about their investments to hide the losses from his spectacularly unsuccessful trading strategy. "Trigilio exploited his clients' trust, using his complete control over their brokerage accounts to finance his lifestyle and conceal his failed securities trading activities," said Helane Morrison, Director of the SEC's San Francisco Regional Office. "Today's action serves as a reminder that investors should be wary of those pitching investment schemes as supposedly risk-free." According to the Commission's complaint, Trigilio has managed at least 96 brokerage accounts belonging to dozens of investors at a number of different brokerage firms since at least 2003. He concealed his identity from the brokerage firms, pretending to be the investor when making trades and transferring money from their accounts to himself and others. The Commission alleges that Trigilio misappropriated $3.1 million from investor accounts at one brokerage firm alone, transferring the money to bank accounts held in his name or the name of his wife and her business. The Commission's complaint further alleges Trigilio fraudulently concealed the large losses he incurred trading options in his clients' accounts. Between January 2006 and September 2007, the accounts handled by Trigilio at one brokerage firm suffered nearly $2 million in trading losses. According to the Commission, Trigilio concealed the losses from investors by providing them with phony account information. He further hid his fraud by using money obtained from several clients to pay promised returns. Among other things, the Commission alleges he concealed his activities by using his clients' personal information to establish and control their brokerage accounts while requiring clients to agree not to directly contact the brokers themselves. The Commission's complaint charges Trigilio with violating the antifraud and investment advisory provisions of the federal securities laws, and seeks preliminary and permanent injunctions, disgorgement, and civil penalties. The Commission further seeks disgorgement of all investor funds disbursed to Trigilio's wife, Razel Trigilio, who received thousands of dollars in investors' money from her husband. In addition, the Commission is seeking an order temporarily prohibiting Trigilio from further trading in the brokerage accounts of his investor clients in order to manage and preserve any remaining investor funds. If granted, the federal district court's order would also freeze the assets of Trigilio as well as the assets of his wife. # # # For more information, contact: Helane Morrison Regional Director SEC's San Francisco Regional Office (415) 705-2450 Cary Robnett Assistant Regional Director SEC's San Francisco Regional Office (415) 705-2335 http://www.sec.gov/news/press/2007/2007-206.htm Home | Previous Page Modified: 09/27/2007
SEC Charges California Investment Adviser With Impersonating Clients to Steal From Accounts FOR IMMEDIATE RELEASE 2007-206 Washington, D.C., Sept. 27, 2007 - The Securities and Exchange Commission today filed fraud charges against an Arcadia, Calif., investment adviser who misappropriated millions of dollars from investors to whom he had promised huge returns through "no risk" options trading. According to the Commission, investment adviser Charles Trigilio withdrew more than $3.4 million from his clients' accounts for his personal use, transferred money from one client to another in a classic Ponzi scheme tactic, and gave clients false information about their investments to hide the losses from his spectacularly unsuccessful trading strategy. "Trigilio exploited his clients' trust, using his complete control over their brokerage accounts to finance his lifestyle and conceal his failed securities trading activities," said Helane Morrison, Director of the SEC's San Francisco Regional Office. "Today's action serves as a reminder that investors should be wary of those pitching investment schemes as supposedly risk-free." According to the Commission's complaint, Trigilio has managed at least 96 brokerage accounts belonging to dozens of investors at a number of different brokerage firms since at least 2003. He concealed his identity from the brokerage firms, pretending to be the investor when making trades and transferring money from their accounts to himself and others. The Commission alleges that Trigilio misappropriated $3.1 million from investor accounts at one brokerage firm alone, transferring the money to bank accounts held in his name or the name of his wife and her business. The Commission's complaint further alleges Trigilio fraudulently concealed the large losses he incurred trading options in his clients' accounts. Between January 2006 and September 2007, the accounts handled by Trigilio at one brokerage firm suffered nearly $2 million in trading losses. According to the Commission, Trigilio concealed the losses from investors by providing them with phony account information. He further hid his fraud by using money obtained from several clients to pay promised returns. Among other things, the Commission alleges he concealed his activities by using his clients' personal information to establish and control their brokerage accounts while requiring clients to agree not to directly contact the brokers themselves. The Commission's complaint charges Trigilio with violating the antifraud and investment advisory provisions of the federal securities laws, and seeks preliminary and permanent injunctions, disgorgement, and civil penalties. The Commission further seeks disgorgement of all investor funds disbursed to Trigilio's wife, Razel Trigilio, who received thousands of dollars in investors' money from her husband. In addition, the Commission is seeking an order temporarily prohibiting Trigilio from further trading in the brokerage accounts of his investor clients in order to manage and preserve any remaining investor funds. If granted, the federal district court's order would also freeze the assets of Trigilio as well as the assets of his wife. # # # For more information, contact: Helane Morrison Regional Director SEC's San Francisco Regional Office (415) 705-2450 Cary Robnett Assistant Regional Director SEC's San Francisco Regional Office (415) 705-2335 http://www.sec.gov/news/press/2007/2007-206.htm Home | Previous Page Modified: 09/27/2007