SEC v. Joseph J. D’Ambrosio, No. LR-26354, Southern District of New York (July 21, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26354 / July 21, 2025 Securities and Exchange Commission v. Joseph J. D’Ambrosio, No. 1:25-cv-05884 (S.D.N.Y. filed July 17, 2025) SEC Charges New York Resident with Investment Fraud Targeting Family and Friends On July 17, 2025, the Securities and Exchange Commission charged New York resident Joseph J. D’Ambrosio with orchestrating a multi-year investment fraud through Hereford Holdings, L.L.C., an entity that he established to invest funds on behalf of family and friends, but which he used instead to misappropriate investor money for his personal use. The SEC alleges that starting in January 1998, D’Ambrosio raised millions of dollars for Hereford from approximately 19 investors. According to the SEC’s complaint, by at least 2010, D’Ambrosio was taking money from Hereford to support his personal lifestyle. All told, D’Ambrosio allegedly transferred approximately $5.5 million of Hereford’s money to himself. He allegedly concealed his fraud by providing Hereford investors false statements about the performance and value of their investments. According to the SEC’s complaint, by December 2024, D’Ambrosio had drained Hereford of virtually all its money. Consequently, the SEC alleges, D’Ambrosio could not meet investor redemption requests, and on or about December 23, 2024, he self-reported his violative conduct to the Commission staff and other law enforcement personnel. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges D’Ambrosio with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. D’Ambrosio has agreed to the entry of a judgment providing permanent injunctive relief under the charged securities laws. The proposed settlement is subject to approval by the court, which will also determine, at a later date, whether to impose disgorgement, prejudgment interest, and a civil penalty, and if so, the amount of any such monetary relief. The SEC’s investigation, which is ongoing, is being conducted by Mary Kay Dunning, Alexandra W. Wang, Neil Hendelman, and Alison R. Levine, under the supervision of Associate Director Sheldon L. Pollock, all of the New York Regional Office. The litigation will be led by Ben Kuruvilla under the supervision of Jack Kaufman. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the U.S. Postal Inspection Service.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26354 / July 21, 2025 Securities and Exchange Commission v. Joseph J. D’Ambrosio, No. 1:25-cv-05884 (S.D.N.Y. filed July 17, 2025) SEC Charges New York Resident with Investment Fraud Targeting Family and Friends On July 17, 2025, the Securities and Exchange Commission charged New York resident Joseph J. D’Ambrosio with orchestrating a multi-year investment fraud through Hereford Holdings, L.L.C., an entity that he established to invest funds on behalf of family and friends, but which he used instead to misappropriate investor money for his personal use. The SEC alleges that starting in January 1998, D’Ambrosio raised millions of dollars for Hereford from approximately 19 investors. According to the SEC’s complaint, by at least 2010, D’Ambrosio was taking money from Hereford to support his personal lifestyle. All told, D’Ambrosio allegedly transferred approximately $5.5 million of Hereford’s money to himself. He allegedly concealed his fraud by providing Hereford investors false statements about the performance and value of their investments. According to the SEC’s complaint, by December 2024, D’Ambrosio had drained Hereford of virtually all its money. Consequently, the SEC alleges, D’Ambrosio could not meet investor redemption requests, and on or about December 23, 2024, he self-reported his violative conduct to the Commission staff and other law enforcement personnel. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges D’Ambrosio with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. D’Ambrosio has agreed to the entry of a judgment providing permanent injunctive relief under the charged securities laws. The proposed settlement is subject to approval by the court, which will also determine, at a later date, whether to impose disgorgement, prejudgment interest, and a civil penalty, and if so, the amount of any such monetary relief. The SEC’s investigation, which is ongoing, is being conducted by Mary Kay Dunning, Alexandra W. Wang, Neil Hendelman, and Alison R. Levine, under the supervision of Associate Director Sheldon L. Pollock, all of the New York Regional Office. The litigation will be led by Ben Kuruvilla under the supervision of Jack Kaufman. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York and the U.S. Postal Inspection Service.