The allegations read: The securities and exchange commission (the "commission"), for its complaint against filoramo, alleges that this case concerns a multi-year fraud by ronald e. Filoramo, a registered representative and investment adviser representative associated with a dually-registered financial services firm. Between february 2017 and october 2021, filoramo misappropriated approximately $761,000 from two long-standing brokerage customers. Filoramo represented that he would invest the customers' funds in securities he recommended. Specifically, filoramo recommended to the customers that they purchase bonds from filoramo's purported client. Instead of investing his customers' funds, filoramo misappropriated the money for his personal benefit, namely for gambling and related expenses. To conceal his fraud, filoramo instructed his customers to send their funds directly to the client that was purportedly liquidating his bond position. Filoramo created fake documents that purported to show the bond purchases. In fact, the customers unknowingly transferred their funds to bank accounts controlled by one of filoramo's friends who, in turn, transferred the funds to a bank account controlled by filoramo. No bonds were ever purchased, and filoramo spent almost all the money, mainly at casinos. By engaging in the conduct described herein, filoramo directly violated 17(a) of the securities act of 1933 ("securities act"), section 10(b) of the securities exchange act of 1934 ("exchange act") and rule 10b-5 thereunder. The commission seeks injunctive relief, disgorgement and prejudgment interest, and civil penalties against filoramo.
