Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Tuesday, November 27, 2007

SEC Obtains TRO Against Alleged Boiler Room Operation

The SEC obtained a TRO against Alex Rabinovich, Rabinovich & Associates, LP, an unregistered investment company and broker-dealer managed by Rabinovich, and Joseph Lovaglio, who, according to the allegations in the SEC complaint, are operating a classic boiler room operation in Brooklyn and offering limited partnership interests in Rabinovich & Associates and other securities to investors, including senior citizens and retirees. According to the complaint, the defendants have raised at least $550,000 from at least twenty-three investors, and have lost most of that money, even while providing investors with quarterly account statements that reflect large gains and "dividends" in every period. The defendants allegedly have also failed to disclose to investors that Rabinovich has been barred by the NASD from associating with any broker or dealer and that there is a pending action by the Financial Industry Regulatory Authority, Inc. ("FINRA") seeking to bar Lovaglio from associating with any broker or dealer.

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