SEC Charges Investment Adviser with Stealing $9 Million From Charitable Foundation

The U.S. Securities and Exchange Commission has charged a New York-based investment adviser with defrauding a non-profit charitable foundation out of $9 million.

The SEC alleges that John Rogicki, managing director and chief compliance officer of Train Babcock Advisors LLC, has been stealing funds from the charity for 12 years to purchase real estate for his children and pay for his own lavish lifestyle.

According to the SEC’s complaint, the charitable foundation was established by an elderly woman to donate her estate to health and education causes following her passing in 2001 at the age of 97 years old. Rogicki has served not only as investment adviser to the charitable foundation, but also as its president and a trustee.

Between 2004 and 2016, he allegedly liquidated securities positions in the foundation’s advisory account and transferring the money for his personal benefit. Rogicki made more than 200 of these fraudulent transactions over the course of those 12 years, totaling more than $9 million.

The SEC seeks a permanent injunction, disgorgement and prejudgment interest, and penalties against Rogicki. In a parallel action, the Manhattan District Attorney brought criminal charges against Rogicki.

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