SEC charges adviser with stealing from clients, committing identity fraud on elderly

New York adviser now living in Egypt, and his operations manager, allegedly bilked seven clients of $378,000

Sep 29, 2017 @ 5:03 pm

By InvestmentNews

The Securities and Exchange Commission has leveled fraud charges against an investment adviser and his operations manager, accusing them of stealing approximately $378,000 from clients.

The SEC's complaint alleges that Tarek D. Bahgat, a former resident of Williamsville, N.Y., who now lives in Egypt, misappropriated money from seven clients, including senior citizens.

In addition, the regulator claims Mr. Bahgat, who had obtained internet bill-paying privileges, impersonated his clients in telephone calls with custodians and triggered money transfers from his clients' accounts to himself or to WealthCFO, a firm he controlled.

The complaint also says the firm's operations manager, Lauramarie Colangelo, of Amherst, N.Y., posed as one of Mr. Bahgat's clients during a telephone call with a broker-dealer.

The SEC's complaint seeks permanent injunctions and civil penalties from Mr. Bahgat and Ms. Colangelo, and disgorgement plus interest from Mr. Bahgat. The complaint names WealthCFO as a relief defendant for the purpose of disgorging illicit proceeds, plus interest, from the fraud.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Transamerica's Boan: Crafting better retirement income conversations

Retirement income is a challenge for investors. How can advisers have better conversations about retirement income? Transamerica's Joseph Boan offers insights and tips for advisers.

Latest news & opinion

What's in a name? For TCA by ETrade, everything

Trust Company of America is gone, and there's big buzz over the name change. But turning the custodian into an industry powerhouse will take a lot longer — if it happens at all.

When it comes to regulating AI in financial services, murky waters are ahead

Laws are unclear on how the technology fits in with compliance.

As Ameriprise case shows, firms on hook when brokers go bad ​

The SEC will collect $4.5 million from the brokerage firm for failing to supervise brokers who were ripping off clients.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Ameriprise to pay $4.5 million to settle SEC charges that five reps stole more than $1 million from clients

Agency censures firm for not protecting clients from thieving brokers.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print