This case was last updated from U.S. District Courts on 03/11/2022 at 07:47:11 (UTC).

Securities and Exchange Commission v. Cottone et al

Case Summary

On January 10, 2022, the United States Securities and Exchange Commission (“SEC”), represented by Andrew O. Schiff, attorney at the SEC’s Miami regional office, filed a civil enforcement action against Anthony M. Cottone (“Cottone” and “Defendant”) and Botanica Group Holdings, LLC (“Botanica Group” or “Relief Defendant”), seeking injunctive relief, disgorgement of all ill-gotten gains and civil penalties for the Defendants’ alleged violation of federal securities laws. This case was filed in U.S. District Court in the Southern District of Florida with Judge Donald M. Middlebrooks presiding.

In the complaint, the SEC alleged that, “The Commission brings this action to enjoin further violations of the federal securities laws by, and obtain disgorgement and civil penalties from, defendant Anthony M. Cottone and to obtain disgorgement from relief defendant Botanica Group Holdings, LLC. From March 23, 2017 to July 31, 2017, Cottone and his now defunct unregistered investment adviser raised approximately $2.76 million from 11 investors in connection with the sale of preferred interests in a private fund through materially false and misleading representations and material omissions regarding the fund’s use of investor proceeds, undisclosed conflicts of interest, and Cottone’s background. Cottone also misused and misappropriated the fund’s assets. In addition, Cottone sold the preferred interests in unregistered transactions and acted as an unregistered broker.”

The SEC further alleged that, “Cottone touted his background to investors orally and in Secured Delaware’s COM and other materials provided to investors highlighting his background as a CFP and his past work at several large “wire-houses” and insurance advisory firms. In an April 6, 2017 letter emailed to one Secured Delaware investor, Cottone stated that he was a CFP and that a CFP is a highly-trained investment adviser that must put the investor’s interest above all else. He also orally told at least one investor he was a fiduciary and another that he held a fiduciary license and had fiduciary duties to protect the investor’s funds.”

There are twelve claims for relief laid down by the SEC. The first four claims alleged deal with violations of Sections 5(a), 5(c), 17(a)(1), 17(a)(2), 17(a)(3) of the Securities Act, respectively. The fifth, sixth, seventh, and eighth claims alleged deal with violations of Section 10(b), Rule 10b-5(a), Rule 10b-5(b), 10(b) and Rule 10b-5(c), Section 15(a)(1) of the Exchange Act, respectively. The ninth, tenth and eleventh claims alleged deal with violation of Sections 206(1), 206(2) and 206(4) and Rule 206(4)-8(b) of the Advisers Act, respectively. The last claim alleged deals with Unjust Enrichment wherein the SEC alleged that because Botanica Group obtained these funds and property as part of the securities law violations alleged above, under circumstances in which it is not just or equitable for it to retain the funds.

In its prayer for relief, the SEC requested the Court for a permanent injunction; an order directing Cottone and Botanica Group (jointly and severally with Cottone) to disgorge all ill-gotten gains, including pre-judgment interest, with payment of civil money penalty pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)], and Section 209(e) of the Advisers Act [15 U.S.C. § 80b-9(e)]; and grant such further relief as may be necessary and appropriate.

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    9:22-CV-80048

  • Filing Date:

    01/10/2022

  • Case Status:

    Disposed - Other Disposed

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Donald M. Middlebrooks

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Anthony M. Cottone

Botanica Group Holdings, LLC

Attorney/Law Firm Details

Plaintiff Attorney

Andrew O. Schiff

Attorney at Securities and Exchange Commission

801 Brickell Avenue, Suite 1800

Miami, FL 33131

Defendant Attorney

Martin Robert Raskin

Attorney at Raskin & Raskin

Suntrust Plaza, Suite 1050, 201 Alhambra Circle

Coral Gables, FL 33134

 

Court Documents

#13

(#13) FINAL JUDGMENT AGAINST ANTHONY M. COTTONE AND BOTANICA GROUP HOLDINGS, LLC Signed by Judge Donald M. Middlebrooks on 2/16/2022. See attached document for full details. (pcs) (Entered: 02/17/2022)

#12

(#12) ORDER GRANTING UNOPPOSED MOTION FOR ENTRY OF FINAL JUDGMENT granting #10 Motion for Judgment. Signed by Judge Donald M. Middlebrooks on 2/16/2022. See attached document for full details. (pcs) (Entered: 02/17/2022)

10 #3

Exhibit Exhibit C - Consent of Relief Defendant Botanica Group Holdings LLC

10 #2

Exhibit Exhibit B - Consent of Defendant Anthony M. Cottone

10 #1

Text of Proposed Order Exhibit A - Proposed Final Judgment

10 #10

Main Document

9 #4

Text of Proposed Order - Final Judgment against Anthony M. Cottone and Botanica

9 #3

Exhibit 3- Prejudgment Interest Calculations

9 #2

Exhibit 2- Declaration of Lina Fernandez

9 #1

Exhibit 1- Copy of Articles of Organization of Botanica L.L.C.

9 #9

Main Document

#8

(#8) ORDER CLOSING CASE Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

#7

(#7) JUDGMENT AS TO RELIEF DEFENDANT BOTANICA GROUP HOLDINGS, LLC Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

#6

(#6) JUDGMENT AS TO DEFENDANT ANTHONY M. COTTONE Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

3 #3

Exhibit Exhibit C - Consent of Defendant, Anthony M. Cottone to Entry of Judgmen

3 #2

Text of Proposed Order Exhibit B - Judgment as to Relief Defendant, Botanica Gro

3 #1

Text of Proposed Order Exhibit A - Judgment as to Defendant, Anthony M. Cottone

3 #3

Main Document

15 More Documents Available
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Docket Entries

  • 02/16/2022
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  • Docket(#13) FINAL JUDGMENT AGAINST ANTHONY M. COTTONE AND BOTANICA GROUP HOLDINGS, LLC Signed by Judge Donald M. Middlebrooks on 2/16/2022. See attached document for full details. (pcs) (Entered: 02/17/2022)

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  • 02/16/2022
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  • Docket(#12) ORDER GRANTING UNOPPOSED MOTION FOR ENTRY OF FINAL JUDGMENT granting #10 Motion for Judgment. Signed by Judge Donald M. Middlebrooks on 2/16/2022. See attached document for full details. (pcs) (Entered: 02/17/2022)

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  • 02/16/2022
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  • Docket(#11) PAPERLESS ORDER denying as moot #9 Plaintiff's Motion for Entry of Final Judgment. In light of Plaintiff's more recently filed Unopposed Motion for Entry of Final Judgment (DE #10 ), Plaintiff's prior Motion for Entry of Final Judgment (DE #9 ), filed before Defendants consented to the relief requested, is denied as moot. Signed by Judge Donald M. Middlebrooks on 2/16/2022. (kal) (Entered: 02/16/2022)

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  • 02/15/2022
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  • Docket(#10) Unopposed MOTION for Judgment (Final Judgment) against Defendant Anthony M. Cottone and Relief Defendant Botanica Group Holdings LLC by Securities and Exchange Commission. (Attachments: #1 Text of Proposed Order Exhibit A - Proposed Final Judgment, #2 Exhibit Exhibit B - Consent of Defendant Anthony M. Cottone, #3 Exhibit Exhibit C - Consent of Relief Defendant Botanica Group Holdings LLC)(Schiff, Andrew) (Entered: 02/15/2022)

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  • 01/28/2022
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  • Docket(#9) Plaintiff's MOTION for Judgment (Final Judgment) Against Defendant Anthony M. Cottone and Relief Defendant Botanica Group Holdings LLC by Securities and Exchange Commission. (Attachments: #1 Exhibit 1- Copy of Articles of Organization of Botanica L.L.C., #2 Exhibit 2- Declaration of Lina Fernandez, #3 Exhibit 3- Prejudgment Interest Calculations, #4 Text of Proposed Order - Final Judgment against Anthony M. Cottone and Botanica Group Holdings LLC)(Schiff, Andrew) (Entered: 01/28/2022)

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  • 01/12/2022
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  • Docket(#8) ORDER CLOSING CASE Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

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  • 01/12/2022
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  • Docket(#7) JUDGMENT AS TO RELIEF DEFENDANT BOTANICA GROUP HOLDINGS, LLC Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

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  • 01/12/2022
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  • Docket(#6) JUDGMENT AS TO DEFENDANT ANTHONY M. COTTONE Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

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  • 01/12/2022
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  • Docket(#5) ORDER GRANTING MOTION FOR ENTRY OF JUDGMENTS granting #3 Motion for Judgment. Signed by Judge Donald M. Middlebrooks on 1/12/2022. See attached document for full details. (pcs) (Entered: 01/12/2022)

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  • 01/11/2022
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  • Docket(#4) NOTICE of Attorney Appearance by Martin Robert Raskin on behalf of Anthony M. Cottone. Attorney Martin Robert Raskin added to party Anthony M. Cottone(pty:dft). (Raskin, Martin) (Entered: 01/11/2022)

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  • 01/10/2022
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  • Docket(#3) Unopposed MOTION for Judgment / Entry of Consented Judgments against Defendant, Anthony M. Cottone and Relief Defendant, Botanica Group Holdings, LLC by Securities and Exchange Commission. (Attachments: #1 Text of Proposed Order Exhibit A - Judgment as to Defendant, Anthony M. Cottone, #2 Text of Proposed Order Exhibit B - Judgment as to Relief Defendant, Botanica Group Holdings, LLC, #3 Exhibit Exhibit C - Consent of Defendant, Anthony M. Cottone to Entry of Judgment, #4 Exhibit Exhibit D - Consent of Relief Defendant, Botanica Group Holdings, LLC to Entry of Judgment)(Schiff, Andrew) (Entered: 01/10/2022)

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  • 01/10/2022
  • Docket(#2) Clerks Notice of Judge Assignment to Judge Donald M. Middlebrooks. Pursuant to 28 USC 636(c), the parties are hereby notified that the U.S. Magistrate Judge William Matthewman is available to handle any or all proceedings in this case. If agreed, parties should complete and file the Consent form found on our website. It is not necessary to file a document indicating lack of consent. Pro se (NON-PRISONER) litigants may receive Notices of Electronic Filings (NEFS) via email after filing a Consent by Pro Se Litigant (NON-PRISONER) to Receive Notices of Electronic Filing. The consent form is available under the forms section of our website. (pcs) (Entered: 01/10/2022)

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  • 01/10/2022
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  • Docket(#1) COMPLAINT FOR INJUNCTIVE AND OTHER RELIEF against Botanica Group Holdings, LLC, Anthony M. Cottone. Filing fees $ 402.00. USA Filer - No Filing Fee Required, filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet)(Schiff, Andrew) (Entered: 01/10/2022)

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