Little Silver Man Jailed After Pleading Guilty To Charity Theft

LITTLE SILVER, NJ - A local man who was a New York-based investment banker was sentenced to spend up to 7 1/2 years in a New York prison for stealing some $9 million from a charitable trust, a spokeswoman for the Manhattan District Attorney's Office told Patch.

John Rogicki, 67, must spend at least 2 1/2 years behind bars for his crimes under a sentence handed down Thursday before New York City Criminal Court Judge Kevin McGrath.

Rogicki’s pleaded guilty Oct. 19 to grand larceny and money laundering charges, the spokesman said. That was one day after he was charged with the criminal complaint and two days after the federal Securities and Exchange Commission brought a separate but related action.

Rogicki was sentenced to the maximum 7 1/2 years Dec. 14.

In the parallel action, the SEC charged the investment adviser with defrauding a non-profit charitable foundation out of $9 million.

The SEC maintains that Rogicki, managing director and chief compliance officer of Train Babcock Advisors LLC, had been stealing funds from the charity for 12 years in order to to purchase real estate and pay for his lavish lifestyle.

According to the SEC's complaint, the charitable foundation was established by an elderly woman to donate her estate to health and educational causes. Rogicki had served not only as investment adviser to the charitable foundation but also as its president and a trustee, and he took advantage of his roles by liquidating securities positions in the foundation's advisory account and transferring the money for his personal benefit, the SEC complaint said.

The SEC's action, filed in federal district court in Manhattan, charged Rogicki with violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The SEC seeks a permanent injunction, disgorgement and prejudgment interest and penalties against Rogicki and a settlement was being devised in the wake of the guilty plea on the criminal charges, according to redbankgreen.

The Little Silver man will go to prison for stealing his client's money. Image via Shutterstock.