Argent, LLC and Arjent Limited - Brokerage Firm Fraud and Misrepresentation - South Florida, including Deerfield Beach, Lake Worth, Boca Raton and Delray Beach FINRA Arbitration and Litigation Attorney
SEC Charges Brokerage Firm Co-Owners With Defrauding Investors
The Securities and Exchange Commission recently announced fraud charges against the co-owners of a Manhattan-based brokerage firm.
The SEC alleges that as Arjent LLC and its UK-based affiliate Arjent Limited were approaching insolvency, chairman and CEO Robert P. DePalo attempted to keep the firms afloat and maintain his extravagant lifestyle by selling shares in a holding company called Pangaea Trading Partners. DePalo along with managing director and co-owner Joshua B. Gladtke allegedly misrepresented to investors the value of Pangaea's assets and how their money would be used - transferring the first $2.3 million raised in the offering directly to his own bank accounts and using it for his personal benefit. DePalo also allegedly transferred investor funds to Gladtke, and sought to cover up their fraud by making misrepresentations to SEC examiners.
In a parallel action, the New York County District Attorney's Office recently announced criminal charges against DePalo and Gladtke.
The SEC's complaint filed in federal court in Manhattan charges DePalo and Gladtke with violating the antifraud and books-and-records provisions of the federal securities laws. Also charged in the SEC's complaint are Pangaea, the Arjent entities, and another entity owned and controlled by DePalo called Excalibur Asset Management. The SEC also charged another principal at Arjent LLC named Gregg A. Lerman, who agreed to settle the charges. Subject to court approval, Lerman is enjoined from future violations with any disgorgement and financial penalty amounts to be determined by the court at a later date.
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