A US District Court has granted a final judgment against investment adviser Tarek D. Bahgat, following an SEC complaint. Bahgat has been ordered to pay $378,000 in disgorgement and prejudgment interest, as well as a $160,000 civil penalty. The court has also imposed a permanent injunction against Bahgat, prohibiting him from violating the antifraud provisions of the Investment Advisers Act.
The SEC’s complaint, filed in November 2019, alleged that Bahgat and his former advisory firm, WealthCFO LLC, misappropriated over $300,000 from three investment advisory clients. Bahgat is also accused of providing false account statements and tax documents to clients in an attempt to conceal his misappropriation of funds.
Bahgat, without admitting or denying the allegations, consented to the entry of the final judgment. In addition to the monetary penalties, he has agreed to be permanently barred from the securities industry. The SEC’s litigation against WealthCFO LLC is still ongoing.