September 21, 2018/US SEC

A federal district court in the Western District of New York entered a final judgment against relief defendant WealthCFO, LLC, a company controlled by investment adviser Tarek D. Bahgat. The SEC obtained a default judgment against WealthCFO after it didn’t respond to the SEC’s complaint. On September 4, 2018, the Court entered a final judgment ordering WealthCFO to disgorge $369,601, representing funds that Bahgat misappropriated from his clients and paid to WealthCFO, together with prejudgment interest of $39,803, for a total of $409,405.

The SEC’s litigation against Bahgat, the remaining defendant in the case, continues. The SEC alleges that Bahgat misappropriated money from seven of his investment advisory clients.