$5.4M Senior Investment Fraud Allegedly Involved Penny Stocks

In US district court, the Securities and Exchange Commission has filed a complaint accusing two people of senior investment fraud. According to the regulator, Angela Beckcom Rubbo Monaco and Joseph A. Rubbo of Florida bilked investors through offerings involving three of their companies.

The SEC’s complaint said that the two of them raised at least $5.4M from 11 mostly older investors. The money was supposed to go toward growing their entertainment businesses and help them develop the Spongebuddy, which was a “sponge-like” glove. Instead, claims the agency, Monacco and Rubbo misappropriated over $2.6M in investor money to pay themselves and family members, as well as to buy a car and cover other unrelated expenses. They also allegedly used the funds to pay “undisclosed sales commissions” to Steven J. Dykes, who solicited investors through cold calls.

The Commission stated that during the alleged senior investment fraud, all three defendants were not registered with the regulator. The companies owned by Rubbo and Monaco that are said to have been involved are VIP Television Inc., VIP TV LLC, and The Spongebuddy LLC.

Now, the regulator wants to impose monetary penalties, permanent injunctions, as well as get back ill-gotten gains plus interest. Meantime, prosecutors in Colorado have filed a parallel criminal case against the two of them, Dykes, and others who were allegedly part of the financial fraud.

This is not the first time that Monaco and Rubbo have been in trouble with regulators or the law. The SEC has filed injunctions against the two of them before. Rubbo was previously convicted for another securities scam.

Unfortunately, this is also not the first time nor will it be the last that individuals accused of senior investment fraud have gone on to allegedly commit fraud again. At Shepherd Smith Edwards and Kantas LTD LLP, we make it our business to help investors that have suffered losses due to financial fraud and other types of securities fraud.

Elder financial fraud incidents are especially disturbing in that often the targets are vulnerable adults whose source of financial security is taken away because they’ve suffered huge losses. Contact our securities law firm today so that we can help you and/or your elderly loved one explore your legal options.

Read the SEC Complaint (PDF)

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