Securities Law, NYSE, NASDAQ & OTC Markets Listings & Compliance

Court Issues Final Judgments Against Scott Valente and the ELIV Group

The Securities and Exchange Commission (SEC) announced that on February 17, 2016, Judge Vincent L. Briccetti of the United States District Court for the Southern District of New York entered final judgments against Defendants Scott Valente and his company, The ELIV Group, LLC. The final judgments enjoin defendants from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. Valente’s judgment further finds Valente liable for disgorgement of $8,200,579.69, and deems that amount satisfied by the criminal restitution order entered against Valente in the United States of America v. Scott Valente, No. 1:15-CR-124 (GLS) (N.D.N.Y.) (“Criminal Proceeding”).

In its complaint filed on June 3, 2014, the SEC alleged that Valente and The ELIV Group fraudulently raised more than $8 million from approximately 80 clients by falsely claiming they achieved consistent and outsized positive returns, among other misrepresentations. ELIV had in fact earned no positive results at all, instead sustaining consistent investment losses for three years. Meanwhile, Valente made substantial cash withdrawals of client funds and spent their money on his home improvements and mortgage payments as well as jewelry and a vacation condominium. Valente’s unsuccessful trading strategies and misappropriations severely diluted the amount of client funds at The ELIV Group.

Valente was criminally charged in the Criminal Proceeding and was sentenced to a prison term of twenty years.

For further information about this securities law blog  post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit  www.securitieslawyer101.com.   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855