SEC v. Edward M. Laborio; Jonathan Fraiman; Matthew K. Lazar; Envit Capital, LLC; Envit Capital Group, Inc.; Envit Capital Holdings, Inc., et al., No. LR-23140, District of Massachusetts (Nov. 24, 2014) — Press Release
raw: 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
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, No. 1:12-cv-11489-PBS (Nov. 24, 2014)
Edward M
Edward M. Laborio and his companies, including Envit Capital, LLC, are accused of running a boiler room scheme that raised over $4 million from approximately 150 investors through false promises and pressurized sales tactics. Laborio and his entities were ordered to pay $37,006,590 in disgorgement, prejudgment interest, and civil penalties. Laborio was also barred from certain parts of the securities industry and faces a parallel criminal case, along with co-defendant Jonathan Fraiman, who was arrested and consented to a judgment and Commission Order. Laborio is currently a fugitive.
Edward M. Laborio and his companies, including Envit Capital, LLC, are accused of running a boiler room scheme that raised over $4 million from approximately 150 investors through false promises and pressurized sales tactics. Laborio and his entities were ordered to pay $37,006,590 in disgorgement, prejudgment interest, and civil penalties. Laborio was also barred from certain parts of the securities industry and faces a parallel criminal case, along with co-defendant Jonathan Fraiman, who was arrested and consented to a judgment and Commission Order. Laborio is currently a fugitive. The U.S. Securities and Exchange Commission (SEC) obtained final judgments against Edward M. Laborio and his network of Envit-related entities for operating a boiler room scheme that defrauded approximately 150 investors of over $4 million between 2006 and 2009 using false promises and high-pressure sales tactics. Laborio and the entities were ordered to pay $37 million in disgorgement, prejudgment interest, and civil penalties, with Laborio personally barred from the securities industry, serving as a public company officer, or participating in penny stock offerings. Jonathan Fraiman and Matthew Lazar, co-conspirators, also settled with the SEC, accepting permanent injunctions and industry bars with limited reapplication rights. In a parallel criminal case, Laborio and Fraiman were indicted on conspiracy and mail fraud charges; Fraiman was arrested, while Laborio remains a fugitive. The U.S. Securities and Exchange Commission (SEC) and the Department of Justice pursued civil and criminal actions against Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar, and multiple related entities (collectively “Envit”) for operating a boiler room scheme that defrauded approximately 150 investors of over $4 million between 2006 and 2009 using false promises and high-pressure sales tactics. Laborio and the Envit entities were ordered to pay $37 million in disgorgement, interest, and civil penalties, with Laborio personally barred from the securities industry and prohibited from participating in penny stock offerings. Fraiman and Lazar consented to permanent injunctions and industry bans—Fraiman with a 10-year reapplication period and Lazar with a 3-year one—after settling with the SEC. In a parallel criminal case, Laborio and Fraiman were indicted on conspiracy and mail fraud charges; Fraiman was arrested, while Laborio remains a fugitive.
Exhibits & Attached Documents (1)
Extracted insights
- $37.01M $37,006,590 $10M–$100M
- $5.01M $5,006,590 $1M–$10M
- $4.00M $4 million $1M–$10M
- person edward m. laborio
- person jonathan fraiman
- person matthew k. lazar
- agency Securities and Exchange Commission
- location United States
- Securities And Exchange Commission filed a complaint against Edward M. Laborio, Jonathan Fraiman, Matthew K. Lazar, and seven entities owned and controlled by Laborio, including a non-existent hedge fund
- Federal Court In Boston, Massachusetts entered final judgments against Edward M. Laborio and his group of related entities, most with the name 'Envit'
- Federal Court In Boston, Massachusetts permanently enjoined Laborio and the Envit entities from violating various sections of the federal securities laws
- Federal Court In Boston, Massachusetts ordered Laborio and the entities to pay a total of $37,006,590 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties
- Securities And Exchange Commission issued an Order barring Jonathan Fraiman from any future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization
- Federal Court In Boston, Massachusetts entered a judgment against Jonathan Fraiman
- Federal Court In Boston, Massachusetts entered a judgment against Matthew K. Lazar
- Edward M. Laborio barred from serving as an officer or director of a public company and from participating in any offering of penny stock
- Securities And Exchange Commission alleged that they participated in a boiler room scheme that raised more than $4 million from approximately 150 investors between October 2006 and late August 2009 through the use of false promises and pressurized sales tactics
- United States indicted Edward Laborio and Jonathan Fraiman
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23140 / November 24, 2014 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-PBS, (District of Massachusetts, Complaint filed August 10, 2012) United States v. Edward Laborio and Jonathan Fraiman, 12-cr-10238-FDS-JGD (District of Massachusetts) Court Enters Judgments Against Former Massachusetts-Based Boiler Room Operator and His Companies, Also Indicted by Grand Jury The Securities and Exchange Commission announced that on November 18, 2014, the federal court in Boston, Massachusetts, entered final judgments against defendant Edward M. Laborio and his group of related entities, most with the name "Envit," in a boiler room scheme case filed by the Commission in 2012. The judgments permanently enjoin Laborio and the Envit entities from violating various sections of the federal securities laws, bars Laborio from certain parts of the securities industry, and orders Laborio and the entities to pay a total of $37,006,590 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties. On August 10, 2012, the Commission filed a complaint against Laborio, Jonathan Fraiman, Matthew K. Lazar, and seven entities owned and controlled by Laborio, including a non-existent hedge fund, alleging that they participated in a boiler room scheme that raised more than $4 million from approximately 150 investors between October 2006 and late August 2009 through the use of false promises and pressurized sales tactics. The court entered the judgments by default permanently enjoining: Laborio, Envit Capital, LLC ("Envit LLC"), Envit Capital Group, Inc. ("Envit Group"), Envit Capital Holdings, Inc. ("Envit Holdings"), Envit Capital Private Wealth Management, LLC ("Envit Wealth"), Envit Capital Multi Strategy Mixed Investment Fund I LP ("Envit Fund"), Aetius Group, PLC ("Aetius PLC"), and Aetius Group, LLC ("Aetius LLC") from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; Laborio and Envit Wealth from future violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder; Laborio, Envit LLC, Envit Group, Envit Holdings, and Aetius PLC from future violations of Section 5 of the Securities Act; Envit Fund and Aetius LLC from future violations of Section 7(a) of the Investment Company Act of 1940; and Laborio from future violations of Section 15(a)(1) and 16(a) of the Exchange Act and Rule 16a-3 thereunder. The judgments also order civil penalties of $4 million against Laborio and each of the Envit entities, and orders Laborio and the entities to disgorge, jointly and severally, $5,006,590 in ill-gotten gains plus prejudgment interest. Laborio's judgment also bars him from serving as an officer or director of a public company and from participating in any offering of penny stock. On October 8, 2013, the court 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 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. In a parallel criminal case, on August 7, 2014, a federal Grand Jury in the District of Massachusetts indicted Laborio and Fraiman on one count of conspiracy and one count of mail fraud for their roles in the Envit boiler room scheme. Also on August 7, 2014, a Magistrate Judge of the United States District Court for the District of Massachusetts issued arrest warrants for Laborio and Fraiman. Fraiman was arrested on August 27, 2014. Laborio is currently a fugitive. 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].U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23140 / November 24, 2014 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-PBS, (District of Massachusetts, Complaint filed August 10, 2012) United States v. Edward Laborio and Jonathan Fraiman, 12-cr-10238-FDS-JGD (District of Massachusetts) Court Enters Judgments Against Former Massachusetts-Based Boiler Room Operator and His Companies, Also Indicted by Grand Jury The Securities and Exchange Commission announced that on November 18, 2014, the federal court in Boston, Massachusetts, entered final judgments against defendant Edward M. Laborio and his group of related entities, most with the name "Envit," in a boiler room scheme case filed by the Commission in 2012. The judgments permanently enjoin Laborio and the Envit entities from violating various sections of the federal securities laws, bars Laborio from certain parts of the securities industry, and orders Laborio and the entities to pay a total of $37,006,590 in disgorgement of ill-gotten gains, prejudgment interest, and civil penalties. On August 10, 2012, the Commission filed a complaint against Laborio, Jonathan Fraiman, Matthew K. Lazar, and seven entities owned and controlled by Laborio, including a non-existent hedge fund, alleging that they participated in a boiler room scheme that raised more than $4 million from approximately 150 investors between October 2006 and late August 2009 through the use of false promises and pressurized sales tactics. The court entered the judgments by default permanently enjoining: Laborio, Envit Capital, LLC ("Envit LLC"), Envit Capital Group, Inc. ("Envit Group"), Envit Capital Holdings, Inc. ("Envit Holdings"), Envit Capital Private Wealth Management, LLC ("Envit Wealth"), Envit Capital Multi Strategy Mixed Investment Fund I LP ("Envit Fund"), Aetius Group, PLC ("Aetius PLC"), and Aetius Group, LLC ("Aetius LLC") from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder; Laborio and Envit Wealth from future violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder; Laborio, Envit LLC, Envit Group, Envit Holdings, and Aetius PLC from future violations of Section 5 of the Securities Act; Envit Fund and Aetius LLC from future violations of Section 7(a) of the Investment Company Act of 1940; and Laborio from future violations of Section 15(a)(1) and 16(a) of the Exchange Act and Rule 16a-3 thereunder. The judgments also order civil penalties of $4 million against Laborio and each of the Envit entities, and orders Laborio and the entities to disgorge, jointly and severally, $5,006,590 in ill-gotten gains plus prejudgment interest. Laborio's judgment also bars him from serving as an officer or director of a public company and from participating in any offering of penny stock. On October 8, 2013, the court 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 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. In a parallel criminal case, on August 7, 2014, a federal Grand Jury in the District of Massachusetts indicted Laborio and Fraiman on one count of conspiracy and one count of mail fraud for their roles in the Envit boiler room scheme. Also on August 7, 2014, a Magistrate Judge of the United States District Court for the District of Massachusetts issued arrest warrants for Laborio and Fraiman. Fraiman was arrested on August 27, 2014. Laborio is currently a fugitive. 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].