SEC v. Mario E. Rivero, No. LR-25986, District of New Jersey (Apr. 29, 2024) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25986 / April 29, 2024 Securities and Exchange Commission v. Mario E. Rivero, Civil Action No. 22-cv-01360 (D.N.J. filed Mar. 14, 2022) SEC Obtains Final Judgment Against Former Broker Engaged in Fraud On April 26, 2024, the U.S. District Court for New Jersey entered a final judgment against Mario E. Rivero, a former registered representative at a broker-dealer, who misappropriated more than $480,000 from his advisory clients and brokerage customers. According to the SEC’s complaint, filed on March 14, 2022, between at least July 2018 and November 2020, Rivero, then a registered representative, fraudulently misappropriated hundreds of thousands of dollars from investment accounts that he handled, including accounts owned by elderly and/or disabled investors. The SEC alleged that Rivero convinced at least five of his clients to transfer funds from their investment accounts to their bank accounts and then from their bank accounts to entities with which Rivero was secretly associated with. Rivero allegedly lied to his victims, explaining the purpose of the fund transfers was so that he could make various investments on their behalf including, in some instances, investments in the stock market. The complaint further alleged that Rivero took investor funds for his own benefit, and he never disclosed to his clients that he would personally benefit from the fund transfers. Rivero was charged with violating Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. On March 6, 2023, the Court entered a partial judgment against Rivero by consent in which he agreed to be permanently enjoined from violations of the charged provisions. On April 26, 2024, the Court entered a final judgment against Rivero by consent in which he agreed to be permanently enjoined from violations of the charged provisions. He also agreed to pay disgorgement of $488,978, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding, United States v. Mario E. Rivero, Jr., Crim. No. 23-cr-88 (D.N.J.). The SEC’s litigation was handled by Christopher J. Dunnigan, John C. Lehmann, and Lindsay S. Moilanen of the New York Regional Office and was supervised by Thomas P. Smith, Jr. and Preethi Krishnamurthy. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of New Jersey and the FBI.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25986 / April 29, 2024 Securities and Exchange Commission v. Mario E. Rivero, Civil Action No. 22-cv-01360 (D.N.J. filed Mar. 14, 2022) SEC Obtains Final Judgment Against Former Broker Engaged in Fraud On April 26, 2024, the U.S. District Court for New Jersey entered a final judgment against Mario E. Rivero, a former registered representative at a broker-dealer, who misappropriated more than $480,000 from his advisory clients and brokerage customers. According to the SEC’s complaint, filed on March 14, 2022, between at least July 2018 and November 2020, Rivero, then a registered representative, fraudulently misappropriated hundreds of thousands of dollars from investment accounts that he handled, including accounts owned by elderly and/or disabled investors. The SEC alleged that Rivero convinced at least five of his clients to transfer funds from their investment accounts to their bank accounts and then from their bank accounts to entities with which Rivero was secretly associated with. Rivero allegedly lied to his victims, explaining the purpose of the fund transfers was so that he could make various investments on their behalf including, in some instances, investments in the stock market. The complaint further alleged that Rivero took investor funds for his own benefit, and he never disclosed to his clients that he would personally benefit from the fund transfers. Rivero was charged with violating Sections 17(a)(1) and 17(a)(2) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. On March 6, 2023, the Court entered a partial judgment against Rivero by consent in which he agreed to be permanently enjoined from violations of the charged provisions. On April 26, 2024, the Court entered a final judgment against Rivero by consent in which he agreed to be permanently enjoined from violations of the charged provisions. He also agreed to pay disgorgement of $488,978, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding, United States v. Mario E. Rivero, Jr., Crim. No. 23-cr-88 (D.N.J.). The SEC’s litigation was handled by Christopher J. Dunnigan, John C. Lehmann, and Lindsay S. Moilanen of the New York Regional Office and was supervised by Thomas P. Smith, Jr. and Preethi Krishnamurthy. The SEC appreciates the assistance of the U.S. Attorney’s Office for the District of New Jersey and the FBI.