SEC v. Montanino and David J. (2014)

Judgment entered

✓ Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-montanino-2014) by email

In June 2014 the SEC instituted proceedings against David Montanino, alleging that he and a now-deceased partner raised or lost at least $794,000 from investors in two private placements run through American Private Equity and related entities. An initial decision of April 16, 2015 became the Commission's final decision on May 28, 2015, ordering only a $25,000 civil penalty.

The record

What was ordered

Civil penalty

$25k

Disgorgement

—

Prejudgment interest

—

Total relief

$25k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The order alleges that Montanino falsely described his experience and the strategy, told an advisory client misleading things about assets under management, and spent investor money on himself, violating Securities Act Section 17(a), Exchange Act Section 10(b) and Rule 10b-5, and Advisers Act provisions. It sets the matter for hearing.

The record had listed the respondent as "Montanino" and "David J." as though they were two people; he is David J. Montanino.

No technique tag is applied. The only use of "Ponzi-like" is Montanino's advice to a client about how to get repaid by her partner, not an allegation about his own scheme.

Outcome. The Commission's May 28, 2015 notice says no petition for review was filed, so the administrative law judge's initial decision (Release No. 773, April 16, 2015) became final as to Montanino. The order described in the notice is a single civil money penalty of $25,000 under Advisers Act section 203(i)(1)(B); it mentions no bar, cease-and-desist order or disgorgement. We read the finality notice, not the initial decision, so we cannot say what was found or whether the allegations in the original order were sustained in full.

Timeline

1. 2014-06-24 Administrative proceeding instituted (cease-and-desist)
2. 2015-04-16 Initial decision (Release No. 773): $25,000 penalty
3. 2015-05-28 Notice that the initial decision has become final

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC order
• SEC notice that initial decision has become final (33-9796)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. submit a correction.