A New York investment adviser who also served as his firm’s chief compliance officer is accused of stealing $9 million from a non-profit charitable foundation.
John Rogicki allegedly stole the money over twelve years to buy real estate and fund his luxury lifestyle.
He was a managing director of Train Babcock Advisors LLC and also served for many years as the firm’s chief compliance officer, the SEC said.
He was arrested on October 18 by the Manhattan District Attorney and criminally charged with fraud.
On October 19, the SEC filed a civil complaint (pdf) against Rogicki in federal court in Manhattan seeking disgorgement and penalties.
The charitable foundation was established by an elderly woman to donate her estate to health and education causes.
Rogicki, 67, served as investment adviser to the foundation and as its president and a trustee.
He allegedly used his position to sell securities in the foundation’s advisory account and transferred the money to himself.
The SEC said there were two hundred transactions between 2004 and 2016 that amounted to over $9 million.
Rogicki formerly lived in New York. He now lives in Little Silver, New Jersey, the SEC said.
New York-based Train Babcock Advisors manages more than $400 million in client assets, mainly for high net worth families.
Richard L. Cassin is the publisher and editor of the FCPA Blog.
Despicable and ethically reprehensible, in addition to criminal. How did his offenses finally come to light? Do his employers understand how this happened and are they implementing review processes and enhanced security counter-measures to mitigate recurrence? Is Train Babcock's senior leadership also culpable and will they be held accountable for the Foundation's losses? Will they make whole the Foundation grantees whose funding may now be jeopardized?
Comments are closed for this article!