U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23506 / March 30, 2016
Securities and Exchange Commission v. Daniel Rivera, et al., Civil Action No. 3:16-cv-01636-MLC-DEA (D.N.J. March 24, 2016)
SEC Charges Two Brothers with Running Ponzi Scheme Targeting Seniors
On March 24, 2016, the Securities and Exchange Commission charged two brothers, and a company that they founded purportedly to develop and sell real estate, with engaging in a $2.7 million Ponzi scheme that targeted approximately 30, largely elderly and unsophisticated investors over a six-year period.
According to the SEC's complaint, filed in federal court in New Jersey:
The SEC's complaint charges Daniel Rivera with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint further charges Matthew Rivera and Robbins Lane with violating Sections 17(a)(1) and (3) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c) thereunder. The complaint also names two companies controlled by Daniel Rivera, Daniel Rivera Inc. and Rivera & Associates (a/k/a Strategic Wealth Partners of New Jersey), as relief defendants.
Without admitting or denying the SEC's charges, the defendants and relief defendants consented to entry of a final judgment permanently enjoining them from violating the provisions of the federal securities laws alleged to have been violated in the SEC's complaint; ordering Daniel Rivera to pay disgorgement and prejudgment interest of more than $1.9 million and a $160,000 civil penalty; ordering Matthew Rivera to pay disgorgement and prejudgment interest of $20,013 and a $100,000 civil penalty; and holding Daniel Rivera Inc. and Rivera & Associates jointly and severally liable with Daniel Rivera for disgorgement and prejudgment interest of $482,029 and $109,459, respectively. The Court entered the final judgment on March 28, 2016.
The SEC's investigation was conducted by Ian Dattner, Gosia Spangenberg, and Donato Furlano, under the supervision of Lisa Deitch, and assisted by Trial Attorney Alfred Day.
The SEC appreciates the assistance of the Financial Industry Regulatory Authority.