Litigation Release No. 24749 / February 27, 2020
SEC v. Nicholas Lattanzio et al., 2:15-cv-03883 (D.N.J.)
Sources have confirmed to The Law Offices of Daniel J Miller, from local news wires and SEC confirm that The Securities and Exchange Commission has obtained a final judgment against defendant Nicholas Lattanzio, a hedge fund manager based in New Jersey, for allegedly defrauding two small businesses out of approximately $4 million.
According to the SEC’s complaint, filed on June 10, 2015, “Lattanzio posed as a hedge fund manager and falsely promised small businesses that he would arrange project financing for them in exchange for an investment in his Black Diamond Capital Appreciation Fund (BD Fund)”. Nicholas Lattanzio represented that the Fund had as much as $800 million under management. He also represented that the fund had double-digit returns over a period of time. The actual fund never had more than approximately $5 million in assets. It was essentially a scheme to use the funds for his own lavish lifestyle buying such things as luxury automobiles, expensive jewelry, a home in an affluent neighborhood, and private school tuition. This has been seen before in many Ponzi schemes across the country.
Lattanzio was convicted at trial on two counts of securities fraud and two counts of wire fraud, and ordered to pay restitution in the amount of 3,929,600 to the victims of his fraud.
According to SEC records, “Lattanzio, the Fund, and three other entities each consented to the entry of a final judgment, enjoining them from future violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and, with respect to Lattanzio and certain of the entities, Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940. The judgment orders Lattanzio and the other defendants to pay disgorgement of $3,929,600, deemed satisfied by the restitution order against him in the criminal case”.
The SEC’s investigation was conducted by David Austin and George Stepaniuk of the SEC’s New York office, and the litigation was led by Todd Brody. The case was supervised by Sanjay Wadhw.
Call 410 law firm for help. The Law Offices of Daniel J. Miller, LLC is currently investigating claims for investors who may have lost money with Nicholas Lattanzio and other brokers and broker/dealers for investment losses and fraud. If you or anyone you know have experienced investment losses from the actions above or other situations, please call 410-LAW-FIRM or fill out the contact us form for a no cost consultation and evaluation of your claim.