SEC Bars Floridian From Securities Industry Following Ponzi Scheme Conviction
The U.S. Securities and Exchange Commission has instituted public administrative proceedings against Paul Anthony LaRocco, a 61-year-old Ocala, Fla., resident, permanently barring him from the securities industry.
This action follows a federal court judgment and a criminal conviction for his role in a fraudulent Ponzi scheme.
According to the SEC’s findings, LaRocco, the founder and chief executive officer of United RL Capital Services LLC, participated in a fraudulent scheme from at least August 2012 through September 2016. The scheme, which defrauded hundreds of investors, involved selling securities in companies that purported to have legitimate business operations, but were, in reality, limited or non-existent.
The SEC’s complaint, previously reported on by AltsWire, alleged that LaRocco, along with four others and three companies – United RL being one – told more than 600 investors their funds would be used for business ventures, but instead, they misappropriated the money for personal enrichment. LaRocco himself admitted as part of a plea agreement to convincing at least 11 individuals to invest over $300,000 in United RL between February 2016 and May 2018 by falsely claiming the company was involved in legitimate medical device and lab services businesses.
The complaint alleged that investors were told that their funds would be used for the companies and some were guaranteed dividends or double-digit returns. But, according to the complaint, the defendants spent at least $20 million to enrich themselves, paid $38.5 million in Ponzi-like payments, and transferred much of the remainder in transactions that appear unrelated to the issuers’ purported businesses.
In October 2022, LaRocco pleaded guilty to one count of mail fraud in the U.S. District Court for the Western District of New York. He was subsequently sentenced to 60 months in prison, three years of supervised release, and ordered to pay $688,781.15 in restitution. A final judgment was also entered against him in a related civil action in September 2024, permanently enjoining him from future violations of federal securities laws.
Based on these findings and LaRocco’s offer of settlement, the SEC has ordered that he be permanently barred from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal adviser, transfer agent, or nationally recognized statistical rating organization. The SEC’s action is authorized under Section 203(f) of the Investment Advisers Act of 1940, which allows the commission to censure, suspend, or bar individuals who have been convicted of certain crimes or have violated federal securities laws.
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