FRAUDSTER DRAINED $5.5 MILLION FROM FAMILY AND FRIENDS!

SEC v. Joseph J. D’Ambrosio — U.S. Securities and Exchange Commission Litigation Release No. 26354, dated July 21, 2025.

The SEC charged Joseph J. D’Ambrosio, a New York resident, with orchestrating an investment fraud through his entity, Hereford Holdings, L.L.C. D’Ambrosio allegedly raised millions from family and friends, but instead used the funds for his personal lifestyle, misappropriating approximately $5.5 million. He concealed the fraud with false statements, and by December 2024, Hereford was nearly depleted, preventing investor redemptions. D'Ambrosio self-reported his conduct in December 2024.

In Plain English

Imagine someone you trust, like a family member or friend, asks you to invest your money with them. They promise to grow it for you. But instead of investing it, they take the money for themselves to buy fancy things or pay their bills. They then give you fake reports saying your money is growing, when it's actually gone. This is what the SEC says Joseph D'Ambrosio did with money from his family and friends, using his company Hereford Holdings.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Establish Investment Fund Starting in November 1997, Joseph J. D’Ambrosio established Hereford Holdings, L.L.C. in Delaware, with its principal place of business in Bronxville, New York. He served as its managing member.
2. Raise Funds from Network Beginning in January 1998, D’Ambrosio raised millions of dollars for Hereford from approximately 19 investors, primarily targeting family and friends.
3. Misappropriate Investor Funds By at least 2010, D’Ambrosio began using money from Hereford to support his personal lifestyle, ultimately transferring approximately $5.5 million of investor funds to himself.
4. Conceal Fraud with False Statements D’Ambrosio allegedly concealed his misappropriation by providing Hereford investors with false statements regarding the performance and value of their investments.
5. Drain Fund Assets By December 2024, D’Ambrosio had depleted Hereford of virtually all its money, leaving him unable to meet investor redemption requests.
6. Self-Report Conduct On or about December 23, 2024, D’Ambrosio self-reported his violative conduct to the Commission staff and other law enforcement personnel after realizing he could no longer meet his obligations.

The Enforcement Action

On July 17, 2025, the SEC charged Joseph J. D’Ambrosio with investment fraud. D’Ambrosio allegedly raised millions from family and friends through Hereford Holdings, L.L.C., but misappropriated approximately $5.5 million for personal use, concealing the fraud with false statements. By December 2024, the fund was depleted, preventing redemptions. D’Ambrosio self-reported his conduct on December 23, 2024. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges D’Ambrosio with violating Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. D’Ambrosio has agreed to a settlement providing permanent injunctive relief, subject to court approval. The court will later determine disgorgement, prejudgment interest, and civil penalties.

Named in this action: Joseph J. D’Ambrosio.

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