SEC Charges New York Businessman with Investment Fraud

Posted on November 24th, 2014 at 11:15 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC has charged a New York businessman, Gregory Rorke, and his software company, Navagate Inc. with making false statements to investors while raising more than $3 million to fund operations.

Between December 2009 and April 2011, Rorke sold approximately $3.2 million worth of the promissory notes issued by Navagate through his New Jersey-based broker-dealer Middlebury Securities LLC. The SEC faulted Middlebury for distributing to investors a false announcement that Rorke possessed millions of dollars in liquid assets to personally guarantee their purchase of those notes.

According to the SEC, Rorke emphasized that he was an experienced businessman and former professor at Columbia Business School. He signed and distributed a personal financial statement to investors.  However, virtually all of the liquid assets and real estate he claimed as his own in the financial statement actually belonged solely to his wife, who did not pledge any of her assets in connection with the securities offering and had no obligation to make good on Rorke’s personal guarantee. 

Ultimately, Navagate defaulted on the notes and Rorke did not adhere to his promise to pay investors under his personal guarantee.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: SEC, Gregory Rorke, Navagate Inc, Middlebury Securities LLC

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