SEC Sues D'Ambrosio Over Alleged Investment Fraud

The U.S. Securities and Exchange Commission (SEC) has filed a civil enforcement action against Joseph J. D'Ambrosio, alleging that he misappropriated millions of dollars from investors over a span of decades. The complaint, lodged in the Southern District of New York, accuses D'Ambrosio of violating multiple provisions of the Investment Advisers Act of 1940.

According to the SEC's filing, D'Ambrosio used Hereford Holdings, L.L.C. - an entity he created to manage funds for family and friends - as a vehicle to divert approximately $5.5 million for personal use. The alleged misconduct began in 1998, with D'Ambrosio reportedly concealing the fraud by issuing false statements about investment performance.

The SEC stated that by late 2024, the fund was effectively depleted, leaving D'Ambrosio unable to meet redemption requests from investors. He reportedly disclosed his actions to the Commission and other authorities in December 2024.

In its lawsuit, the SEC is seeking a permanent injunction, the disgorgement of gains, civil penalties, and any additional relief deemed appropriate by the court. D'Ambrosio, 66, of Bronxville, New York, has not been criminally charged, and the case remains pending.