A federal district court in the Western District of New York entered a final judgment by default against Tarek D. Bahgat, also known as Terry Dean Bahgat, an investment adviser formerly based in Amherst, New York.
According to BrokerCheck, Bahgat had been employed by 15 firms in 29 years and was barred from the securities industry by FINRA in 2018.
The SEC’s complaint alleged that Bahgat misappropriated over $378,000 from seven of his investment advisory clients. The SEC alleged that Bahgat illicitly obtained internet access to some of his clients’ brokerage accounts by impersonating, or having his co-defendant, Lauramarie Colangelo, impersonate Bahgat’s clients during telephone calls with broker-dealers holding the clients’ accounts.
This enabled Bahgat to cause money to be transferred from the clients’ account to Bahgat and to his company, relief defendant WealthCFO LLC. The SEC’s complaint charged Bahgat with violating SEC rules. The complaint sought permanent injunctions, disgorgement, prejudgment interest and civil penalties from Bahgat.
The SEC obtained a default judgment against Bahgat after he failed to respond to the Commission’s complaint. On June 6, 2023, the court enjoined Bahgat from violating SEC rules; ordered Bahgat to disgorge $378,021.97; $142,057.43 in prejudgment interest; and imposed a civil penalty of $378,854.00.
As The DI Wire previously reported, A federal district court in the Western District of New York entered a final judgment against Amherst, New York resident Lauramarie Colangelo, formerly an assistant to Bahgat.