March 2, 2007
Settled SEC Action in Connecticut Fraud Action
The SEC announced that on Feb. 27, 2007, the Connecticut federal district court entered a final judgment by consent in a fraud action filed by the Commission against Charles B. Spadoni, the former vice-president and general counsel of Triumph Capital Group, an investment firm. In the complaint filed against Spadoni and ten other defendants, the Commission had alleged that Paul J. Silvester, the former Treasurer of the State of Connecticut, agreed to invest $200 million of state pension funds with Triumph in November 1998; in return, Triumph, through Spadoni and the firm's chairman, agreed to provide consulting contracts valued at approximately $1 million each to two of Silvester's friends. In an earlier criminal proceeding, a jury found Spadoni guilty of various charges, including racketeering and racketeering conspiracy concerning acts of bribery and obstruction of justice, theft/bribery concerning programs receiving federal funds, and wire fraud/theft of honest services. On Oct. 27, 2006, the court sentenced Spadoni to 36 months imprisonment and ordered him to pay a fine of $50,000.
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