(HedgeCo.Net) A federal district court in the Western District of New York has entered a final judgment against Amherst, New York resident Lauramarie Colangelo, formerly an assistant to investment adviser Tarek D. Bahgat.

The SEC’s complaint alleges that Bahgat misappropriated money from seven of his investment advisory clients, in some instances through WealthCFO LLC, a company Bahgat controlled. The SEC also alleges that Colangelo, WealthCFO’s operations manager, impersonated one of Bahgat’s clients during a telephone call with a broker-dealer holding the client’s account and thereby obtained internet access to that account. This enabled Bahgat to cause money to be transferred from the client’s account to Bahgat and WealthCFO. The SEC’s complaint charges Bahgat with violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (Advisers Act) and Colangelo with aiding and abetting certain of Bahgat’s violations. The complaint sought permanent injunctions and civil penalties from Colangelo.