SEC v. Ortiz
DOCKET · 1:19-cv-02066 · FILED · APR 9, 2019
Violations Charged
Section 17(a), Section 10(b), Rule 10b-5, adviser antifraud provisions
Case Overview
Gonzalo Ortiz sold himself as a successful stock investor, promised a minimum 50% annual return, and persuaded an investor to hand him control of more than $570,000 in retirement savings.
Ortiz took approximately $224,500 of the money for himself and put the rest into high-risk microcap stocks that lost about $290,000. He concealed both with a fabricated account statement showing high returns. The SEC charged fraud under the securities laws and the Advisers Act, and federal prosecutors in Brooklyn announced criminal charges the same day.
Joe's Role
The SEC's litigation release names Joe among the staff who conducted the investigation.
Outcome
A parallel criminal case was brought by the U.S. Attorney's Office for the Eastern District of New York. The SEC's civil action resolved afterward.
ISSUERS · Multiple high-risk microcaps