New York Brokerage and Co-Owners Charged with Fraud

The Securities and Exchange Commission (SEC) announced that it has charged the co-owners of Manhattan-based brokerage firm, Arjent LLC, and its UK-based affiliate, Arjent Limited, with fraud.

The chairman and CEO Robert P. DePalo, according to the SEC, attempted to keep the firms afloat and yet maintain his extravagant lifestyle. Allegedly, DePalo sold shares in a holding company called Pangaea Trading Partners. DePalo, along with managing director and co-owner, Joshua B. Gladtke, allegedly misrepresented to investors the value of Pangaea’s assets and how the investors' money would be used. DePalo allegedly transferred the first $2.3 million raised in the offering directly to his own personal bank accounts and used it for his own benefit. DePalo also allegedly transferred investor funds to Gladtke, and covered up their fraud by making misrepresentations to SEC examiners.

Also, the New York County District Attorney’s Office announced criminal charges against DePalo and Gladtke.

The SEC’s complaint charges DePalo and Gladtke with violating the antifraud and books-and-records provisions of the federal securities laws, also charged are Pangaea, the Arjent entities, and another entity owned and controlled by DePalo called Excalibur Asset Management. Also charged, another principal at Arjent LLC, Gregg A. Lerman, who agreed to settle the charges.

If you suffered financial losses in Pangaea Trading Partners call Soreide Law Group for your free consultation on how to potentially recover those losses at 888-760-6552. We represent our clients nationwide before FINRA.