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 investment adviser Tarek Bahgat.
The Securities and Exchange Commission charged Bahgat with misappropriating money from seven of his investment advisory clients, in some instances through WealthCFO LLC, a company that he controlled.
The SEC claimed that Colangelo, WealthCFO’s operations manager, impersonated one of Bahgat’s clients during a telephone call with the broker-dealer holding the client’s account. Colangelo was granted internet access to the account, allowing Bahgat to transfer money from the client’s account to himself and WealthCFO.
The SEC’s complaint charges Bahgat with violating various sections of the Advisers Act and Colangelo with aiding and abetting. Without admitting or denying the allegations, Colangelo consented to permanent injunctions and was fined $7,500 to be paid in monthly $100 installments.
Litigation is continuing against the remaining defendants in the case.