SEC v. Edward Laborio; and Jonathan Fraiman, No. LR-23430, District of Massachusetts (Dec. 16, 2015) — Press Release
raw: Edward Laborio and Jonathan Fraiman
Edward Laborio and Jonathan Fraiman, No. 1:12-cv-11489-MBB (Dec. 16, 2015)
summary
Former boiler room operator Jonathan Fraiman was found guilty by a federal jury in Massachusetts on charges of conspiracy and mail fraud for his role in a $4+ million securities fraud scheme involving
paragraph
Former boiler room operator Jonathan Fraiman was found guilty by a federal jury in Massachusetts on charges of conspiracy and mail fraud for his role in a $4+ million securities fraud scheme involving false promises and high-pressure sales tactics tied to non-existent hedge funds operated by Edward Laborio and the Envit entities. Fraiman, along with co-conspirator Matthew Lazar, was charged civilly by the SEC in 2012; both consented to permanent injunctions and industry bans—Fraiman barred for 10 years, Lazar for 3. Laborio, the mastermind, fled and was later found deceased in Spain, resulting in a default judgment against him and the Envit entities for $5 million in disgorgement and $4 million in civil penalties. The U.S. Attorney’s Office prosecuted the criminal case, with Fraiman sentenced on March 10, 2016.
narrative
Former boiler room operator Jonathan Fraiman was found guilty by a federal jury in Massachusetts on charges of conspiracy and mail fraud for his role in a $4+ million securities fraud scheme involving false promises and high-pressure sales tactics tied to non-existent hedge funds operated by Edward Laborio and the Envit entities. Fraiman, along with co-conspirator Matthew Lazar, was charged civilly by the SEC in 2012; both consented to permanent injunctions and industry bans—Fraiman barred for 10 years, Lazar for 3. Laborio, the mastermind, fled and was later found deceased in Spain, resulting in a default judgment against him and the Envit entities for $5 million in disgorgement and $4 million in civil penalties. The U.S. Attorney’s Office prosecuted the criminal case, with Fraiman sentenced on March 10, 2016. Former boiler room operator Jonathan Fraiman was found guilty by a federal jury in Massachusetts on charges of conspiracy and mail fraud for his role in a $4+ million securities fraud scheme involving false promises and high-pressure sales tactics tied to non-existent hedge funds operated by Edward Laborio and the Envit entities. Laborio, the mastermind behind the scheme, was charged in both civil and criminal proceedings but was later found deceased in Spain, leading to a default judgment against him and the Envit entities, which included $5 million in disgorgement and $4 million in civil penalties. Fraiman and co-defendant Matthew Lazar both consented to civil injunctions and permanent industry bans, with Fraiman barred for ten years and Lazar for three. Fraiman was sentenced on March 10, 2016, following his criminal conviction, while the SEC and U.S. Attorney’s Office jointly pursued enforcement actions to halt the fraudulent operations and hold participants accountable.
Classified boiler-room(confidence 100%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →
Statutes
Parties
Securities and Exchange CommissionEdward M. LaborioJonathan FraimanMatthew K. LazarEnvit Capital Private Wealth Management, LLCEnvit Capital Group, Inc.Envit Capital Holdings, Inc.Envit Capital Multi Strategy Mixed Investment Fund I LPAetius Group PLCAetius Group LLCEnvit Capital, LLCEdward Laborio
Keywords
fraimanenvitsecuritieslaboriocommissionedward laboriojonathan fraimanenvit capitalcivil actionexchangemassachusettslaborio jonathansecurities exchangelazargroup
Extracted insights
Dollar amounts 2
- $5.01M $5,006,590 $1M–$10M
- $4.00M $4 million $1M–$10M
Entities 7
- agency by a federal grand jury on august 7, 2014
- person edward m. laborio
- person final judgment
- person jonathan fraiman
- scheme_term jonathan fraiman guilty of conspiracy and mail fraud
- person matthew k. lazar
- agency Securities and Exchange Commission
Triples 21
- Securities And Exchange Commission announced jury returned a guilty verdict against Jonathan Fraiman on December 14, 2015
- Jury found Jonathan Fraiman guilty of conspiracy and mail fraud
- Securities And Exchange Commission charged Jonathan Fraiman for the same conduct in a civil action
- Scheme raised more than $4 million from January 2008 through late August 2009
- Scheme was owned and controlled by Edward M. Laborio
- Jonathan Fraiman will be sentenced on March 10, 2016 by Honorable F. Dennis Saylor, IV
- Securities And Exchange Commission charged Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar and Envit entities on August 10, 2012
- Jonathan Fraiman was indicted by a federal grand jury on August 7, 2014
- Jonathan Fraiman was arrested on August 27, 2014
- Edward M. Laborio was found deceased in Barcelona, Spain earlier this year
- Court entered judgment against Jonathan Fraiman enjoining future antifraud violations on October 8, 2013
- Securities And Exchange Commission issued order barring Jonathan Fraiman from future association with brokers and advisers on October 11, 2013
- Jonathan Fraiman consented to the judgment and the Commission order
- Court entered judgment against Matthew K. Lazar enjoining future antifraud violations on November 27, 2013
- Securities And Exchange Commission issued order barring Matthew K. Lazar from future association with brokers and advisers on December 11, 2013
- Matthew K. Lazar consented to the judgment and the Commission order
- Court entered final judgment against Edward M. Laborio and Envit entities on November 18, 2014
- Final Judgment ordered civil penalties of $4 million against Edward M. Laborio and each Envit entity
- Final Judgment ordered Edward M. Laborio and Envit entities to disgorge $5,006,590 plus prejudgment interest
- Laborio's Judgment barred him from serving as officer or director of a public company and from penny‑stock offerings
- SEC thanks U.S. Attorney's Office for the District of Massachusetts for its prosecuting efforts
Extracted body text (4,704c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23430 / December 16, 2015 United States v. Edward Laborio and Jonathan Fraiman, 12-cr-10238-FDS-JGD (District of Massachusetts) Securities and Exchange Commission v. Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar, Envit Capital, LLC, Envit Capital Group, Inc., Envit Capital Holdings, Inc., Envit Capital Private Wealth Management, LLC, Envit Capital Multi Strategy Mixed Investment Fund I LP, Aetius Group PLC, and Aetius Group LLC, Civil Action No. 1:12-cv-11489-MBB, (District of Massachusetts, Complaint filed August 10, 2012) Former Boiler Room Operator Found Guilty by Federal Jury in Massachusetts The Securities and Exchange Commission announced today that on December 14, 2015, a jury in the federal court in Boston, Massachusetts, returned a guilty verdict against former Massachusetts resident Jonathan Fraiman in a criminal trial prosecuted by the Massachusetts U.S. Attorney. The jury found Fraiman guilty on one count of conspiracy and one count of mail fraud for his role in a boiler room scheme involving the sale of securities. The Commission previously charged Fraiman for the same conduct in a civil action. The scheme raised more than $4 million primarily from January 2008 through late August 2009 through the use of false promises and pressurized sales tactics with regard to the sale of securities in a group of related entities, most with the name "Envit," that were owned and controlled by Edward M. Laborio, including a non-existent hedge fund. Fraiman will be sentenced on March 10, 2016 by the Honorable F. Dennis Saylor, IV. On August 10, 2012, the Commission charged Laborio, Fraiman, Matthew K. Lazar, and the Envit entities in federal court for their roles in the Envit boiler room scheme. On August 7, 2014, Fraiman was criminally indicted by a federal grand jury, and was arrested on August 27, 2014. Laborio, who was also charged in the indictment, was a fugitive and was found deceased in Barcelona, Spain earlier this year. On October 8, 2013, the court in the Commission's civil action entered a judgment against Fraiman enjoining him from future violations of the antifraud provisions of the federal securities laws. On October 11, 2013, the Commission issued an Order barring Fraiman from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after ten years. Fraiman consented to both the judgment and the Commission Order. On November 27, 2013, the court in the Commission's civil action entered a judgment against Lazar, enjoining him from future violations of the antifraud provision of the federal securities laws. On December 11, 2013, the Commission issued an Order barring Lazar from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after three years. Lazar consented to both the judgment and the Commission Order. On November 18, 2014, the court in the Commission's civil action entered a final judgment by default against Laborio and the Envit entities, enjoining them from future violations of the antifraud and other provisions of the federal securities laws. The final judgment ordered civil penalties of $4 million against Laborio and each of the Envit entities, and ordered Laborio and the entities to disgorge, jointly and severally, $5,006,590 in ill-gotten gains plus prejudgment interest. Laborio's judgment also barred him from serving as an officer or director of a public company and from participating in any offering of penny stock. The SEC thanks the U.S. Attorney's Office for the District of Massachusetts for its efforts in prosecuting the case. For more information, see Exchange Act Release No. 34-59900 (May 12, 2009) [Order suspending trading in Envit Group securities]; Initial Decision Release No. 385 (August 13, 2009) [Initial decision revoking registration of Envit Group securities]; Exchange Act Release No. 60658 (September 11, 2009) [Notice of final decision revoking registration of Envit Group securities]; Litigation Rel. No. 22444 (August 10, 2012) [Civil Complaint]; Litigation Rel. No. 22836 (October 8, 2013) [Fraiman settlement]; Exchange Act Release No. 70678 (October 11, 2013) [Fraiman Order]; Litigation Release No. 22881 (December 2, 2013) [Lazar settlement]; Exchange Act Release No. 71043 (December 11, 2013) [Lazar Order]; and Litigation Rel. No. 23140 (November 24, 2014) [Laborio and Envit final judgment].
OCR text (4,704c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23430 / December 16, 2015 United States v. Edward Laborio and Jonathan Fraiman, 12-cr-10238-FDS-JGD (District of Massachusetts) Securities and Exchange Commission v. Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar, Envit Capital, LLC, Envit Capital Group, Inc., Envit Capital Holdings, Inc., Envit Capital Private Wealth Management, LLC, Envit Capital Multi Strategy Mixed Investment Fund I LP, Aetius Group PLC, and Aetius Group LLC, Civil Action No. 1:12-cv-11489-MBB, (District of Massachusetts, Complaint filed August 10, 2012) Former Boiler Room Operator Found Guilty by Federal Jury in Massachusetts The Securities and Exchange Commission announced today that on December 14, 2015, a jury in the federal court in Boston, Massachusetts, returned a guilty verdict against former Massachusetts resident Jonathan Fraiman in a criminal trial prosecuted by the Massachusetts U.S. Attorney. The jury found Fraiman guilty on one count of conspiracy and one count of mail fraud for his role in a boiler room scheme involving the sale of securities. The Commission previously charged Fraiman for the same conduct in a civil action. The scheme raised more than $4 million primarily from January 2008 through late August 2009 through the use of false promises and pressurized sales tactics with regard to the sale of securities in a group of related entities, most with the name "Envit," that were owned and controlled by Edward M. Laborio, including a non-existent hedge fund. Fraiman will be sentenced on March 10, 2016 by the Honorable F. Dennis Saylor, IV. On August 10, 2012, the Commission charged Laborio, Fraiman, Matthew K. Lazar, and the Envit entities in federal court for their roles in the Envit boiler room scheme. On August 7, 2014, Fraiman was criminally indicted by a federal grand jury, and was arrested on August 27, 2014. Laborio, who was also charged in the indictment, was a fugitive and was found deceased in Barcelona, Spain earlier this year. On October 8, 2013, the court in the Commission's civil action entered a judgment against Fraiman enjoining him from future violations of the antifraud provisions of the federal securities laws. On October 11, 2013, the Commission issued an Order barring Fraiman from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after ten years. Fraiman consented to both the judgment and the Commission Order. On November 27, 2013, the court in the Commission's civil action entered a judgment against Lazar, enjoining him from future violations of the antifraud provision of the federal securities laws. On December 11, 2013, the Commission issued an Order barring Lazar from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, with the right to reapply after three years. Lazar consented to both the judgment and the Commission Order. On November 18, 2014, the court in the Commission's civil action entered a final judgment by default against Laborio and the Envit entities, enjoining them from future violations of the antifraud and other provisions of the federal securities laws. The final judgment ordered civil penalties of $4 million against Laborio and each of the Envit entities, and ordered Laborio and the entities to disgorge, jointly and severally, $5,006,590 in ill-gotten gains plus prejudgment interest. Laborio's judgment also barred him from serving as an officer or director of a public company and from participating in any offering of penny stock. The SEC thanks the U.S. Attorney's Office for the District of Massachusetts for its efforts in prosecuting the case. For more information, see Exchange Act Release No. 34-59900 (May 12, 2009) [Order suspending trading in Envit Group securities]; Initial Decision Release No. 385 (August 13, 2009) [Initial decision revoking registration of Envit Group securities]; Exchange Act Release No. 60658 (September 11, 2009) [Notice of final decision revoking registration of Envit Group securities]; Litigation Rel. No. 22444 (August 10, 2012) [Civil Complaint]; Litigation Rel. No. 22836 (October 8, 2013) [Fraiman settlement]; Exchange Act Release No. 70678 (October 11, 2013) [Fraiman Order]; Litigation Release No. 22881 (December 2, 2013) [Lazar settlement]; Exchange Act Release No. 71043 (December 11, 2013) [Lazar Order]; and Litigation Rel. No. 23140 (November 24, 2014) [Laborio and Envit final judgment].