U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25800 / August 3, 2023
Securities and Exchange Commission v. Jose D. Rocha, Civ. Action No. 1:23-cv-11779 (D. Mass. filed August 3, 2023)
SEC Charges Massachusetts Resident with $1.2 Million Offering Fraud and Ponzi Scheme
The Securities and Exchange Commission today announced charges against Brockton, Massachusetts resident Jose D. Rocha for running a Ponzi scheme in which he took approximately $1.2 million from 13 investors in the Cape Verdean community around the Boston area. Rocha promised investors he would invest their money in securities with guaranteed returns of 12% per month. Instead, Rocha used only a small percentage of the money to make highly leveraged, and highly unsuccessful, trades of stock and stock options. Rocha spent the balance of the funds, the vast majority, to feed his gambling habit and embark on a luxury lifestyle. Rocha also used money from later investments to pay out on earlier investments.
The SEC's complaint, filed in U.S. District Court for the District of Massachusetts, charges Rocha with violating the antifraud provisions of Section 17(a) 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. To settle the charges, Rocha consented to the entry of a judgment permanently enjoining him from violating the charged provisions of the federal securities laws and from participating in the offer or sale of any security to investors or potential investors, with the amounts of disgorgement, prejudgment interest, and civil monetary penalties to be determined by the Court.
In a parallel action, Rocha pled guilty to criminal charges of securities fraud filed by the U.S. Attorney's Office for the District of Massachusetts.
The SEC's case is being handled by Jeffrey Cook, Patrick Noone, Alfred Day, and Celia Moore of the SEC's Boston Regional Office. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Massachusetts and the Boston field office of the Federal Bureau of Investigation.