SEC charges adviser with stealing $9 million intended for charity

John Rogicki, also his firm's chief compliance officer, is the second person at New York-based Train Babcock Advisors to face fraud-related charges

Oct 20, 2017 @ 12:32 pm

By InvestmentNews

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

The SEC alleges that Mr. Rogicki, managing director and chief compliance officer of Train Babcock Advisors, has been stealing funds from the charity for a dozen years to purchase real estate and pay for his own lifestyle. According to the SEC's complaint, an elderly woman established the charitable foundation to fund health and education causes from her estate.

In the release, the SEC said that Mr. Rogicki served not only as investment adviser to the charitable foundation but also as its president and a trustee, and he allegedly took advantage of his roles by liquidating securities positions in the foundation's advisory account and transferring the money for his personal benefit.

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

Last December, Brian Keenan, a former financial adviser with Train Babcock, pleaded guilty to stealing more than $1.6 million from the beneficiaries of three trusts that he managed, according to a statement from the Manhattan district attorney's office.

According to the statement, one of Mr. Keenan's responsibilities was to serve as a trustee, making him responsible for managing the trusts, which belong to members of the same family, and acting in the best interests of the beneficiaries. From approximately May 2007 to August 2012, when he was employed at the firm, Mr. Keenan stole money that he spent on personal expenses, including credit card payments.

The Train Babcock website says that the Manhattan-based registered investment advisory firm manages more than $400 million for more than 200 families and individuals.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


How 401(k) advisers can use 'centers of influence' to grow their business

Leveraging relationships with accounting, benefits, and property and casualty insurance firms can help deliver new business leads for retirement plan advisers.

Latest news & opinion

SEC advice rule may give RIAs leg up over broker-dealers

Experts say advisers will be able to point to their role as fiduciaries as a differentiator in the advice market.

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

SEC advice rule seeks to tighten reins on brokers

The proposed rule puts new restrictions on brokers, but it is still unclear how strongly the SEC is clamping down.


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 It'll help us continue to serve you.

Yes, show me how to whitelist

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


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print