This case was last updated from PACER on 09/10/2021 at 04:51:58 (UTC).

Securities and Exchange Commission v. Tellone Management Group, Inc. et al

Case Summary

On August 31, 2021, the Securities and Exchange Commission (“SEC”), represented by Amy J. Longo, attorney at the SEC’s LA regional office, filed a civil enforcement action against Tellone Management Group, Inc. (“TMG”), Dean Tellone (“Tellone”), Steven Wolfe (“Wolfe”), Robert Gumerman (“Gumerman”), (collectively, “Defendants”), seeking a temporary restraining order, permanent injunctive relief, disgorgement with prejudgment interest, civil penalties and other reliefs for the alleged fraudulent misconduct and breaches of fiduciary duty by Defendant. This case was filed in U.S. District Court in the Central District of California with Judge Josephine L. Staton and Judge John D. Early presiding.

 

This civil enforcement action involves alleged fraudulent misconduct and breaches of fiduciary duty by Defendant Dean Tellone and the investment advisory firm he founded, solely owns, and controls, Tellone Management Group, Inc. (“TMG”). 

 

In its complaint the Plaintiff alleged that, “Defendants TMG, Tellone and Gumerman, acting with scienter, engaged in a scheme to defraud investors in the Mortgage Fund. They concealed information from the Mortgage Fund’s auditors concerning the Gumermans’ bankruptcy and the discharge of the collateral for Loan #1415-06—giving the false impression that the loan was still outstanding for purposes of the Mortgage Fund’s fiscal year 2014 audit. After the 2014 audit, Tellone and Gumerman entered a secret side deal that was concealed from the Mortgage Fund’s auditors and that materially altered the terms of Loans 1415x-06 and Loan #1791-15, and created a conflict of interest between Tellone and the Mortgage Fund investors, most of whom were TMG advisory clients.”

 

The Plaintiff further alleged that, “Defendants TMG, Tellone and Gumerman, with scienter, employed devices, schemes and artifices to defraud; and engaged in acts, practices or courses of conduct that operated as a fraud on the investing public by the conduct described in detail above.”

 

There are ten claims for relief laid down by the Plaintiff, the first claim alleged is against Defendants TMG, Tellone, and Gumerman for Fraud in Connection with the Purchase or Sale of Securities Violations of Section 10(b) of the Exchange Act and Rule 10b-5(b), the second claim alleged is against TMG and Tellone for similar claims, the third claim alleged is against TMG, Tellone and Gumerman for Fraud in the Offer or Sale of Securities Violations of Sections 17(a)(1) and (3) of the Securities Act, the fourth claim alleged is against TMG and Tellone for the same violations as the third claim, the fifth claim alleged is against Wolfe for Aiding and Abetting Violations of Sections 17(a) of the Securities Act and Sections 10(b) of the Exchange Act, and Rule 10b-5(a)-(c), the sixth claim alleged is against TMG and Tellone for Fraud by an Investment Adviser Violations of Sections 206(1) and 206(2) of the Advisers Act, the seventh claim alleged is against Wolfe for Aiding and Abetting Violations of Sections 206(1) and 206(2) of the Advisers Act, the eight claim alleged is against TMG for Violations of Advisers Act Section 206(4) and Rule 206(4)-7, the ninth claim alleged is against Tellone for Aiding and Abetting Violations of Section 206(4) and Rule 206(4)-7 of the Advisers Act and the last claim alleged is against TMG and Tellone for Violation of Section 207 of the Advisers Act. 

 

In its prayer for relief the Plaintiff has requested the Court to issue a judgment in favour of Plaintiff, permanently enjoin Defendants; order Defendants TMG and Tellone to disgorge all funds received from their illegal conduct, together with prejudgment interest; and order Defendants TMG and Tellone to pay civil penalties under Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)], Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)], and Section 209(e) of the Advisers Act [15 U.S.C. §80b-9(e)].

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    8:21-CV-01413

  • Filing Date:

    08/31/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    California Central District

Judge Details

Presiding Judge

Karen E. Scott

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Tellone Management Group, Inc.

Dean Tellone

Steven Wolfe

Robert Gumerman

Attorney/Law Firm Details

Plaintiff Attorney

Amy J. Longo

Attorney at US Securities and Exchange Commission

444 South Flower Street Suite 900

Los Angeles, CA 90071

 

Court Documents

#6

(#6) 21 DAY Summons issued re Complaint #1 as to defendants Robert Gumerman, Dean Tellone, Tellone Management Group, Inc., Steven Wolfe. (esa) (Entered: 09/01/2021)

5 #1

CV11C

5 #5

Main Document

4 #1

Proposed Order as to judgement regarding defendant Robert Gumerman

4 #4

Main Document

#3

(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 , Civil Cover Sheet (CV-71) #2 filed by Plaintiff Securities and Exchange Commission. (Longo, Amy) (Entered: 08/31/2021)

#2

(#2) CIVIL COVER SHEET filed by Plaintiff Securities and Exchange Commission. (Longo, Amy) (Entered: 08/31/2021)

#1

(#1) COMPLAINT No Fee Required - US Government, filed by Plaintiff Securities and Exchange Commission. (Attorney Amy J. Longo added to party Securities and Exchange Commission(pty:pla))(Longo, Amy) (Entered: 08/31/2021)

 

Docket Entries

  • 09/01/2021
  • View Court Documents
  • Docket(#6) 21 DAY Summons issued re Complaint #1 as to defendants Robert Gumerman, Dean Tellone, Tellone Management Group, Inc., Steven Wolfe. (esa) (Entered: 09/01/2021)

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  • 09/01/2021
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  • Docket(#5) NOTICE TO COUNSEL re Magistrate Judge Direct Assignment Program. This case has been randomly assigned to Magistrate Judge Karen E. Scott. (Attachments: #1 CV11C) (esa) (Entered: 09/01/2021)

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  • 08/31/2021
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  • Docket(#4) STIPULATION for Judgment as to Robert Gumerman filed by Plaintiff Securities and Exchange Commission. (Attachments: #1 Proposed Order as to judgement regarding defendant Robert Gumerman)(Longo, Amy) (Entered: 08/31/2021)

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  • 08/31/2021
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  • Docket(#3) Request for Clerk to Issue Summons on Complaint (Attorney Civil Case Opening) #1 , Civil Cover Sheet (CV-71) #2 filed by Plaintiff Securities and Exchange Commission. (Longo, Amy) (Entered: 08/31/2021)

    Read MoreRead Less
  • 08/31/2021
  • View Court Documents
  • Docket(#2) CIVIL COVER SHEET filed by Plaintiff Securities and Exchange Commission. (Longo, Amy) (Entered: 08/31/2021)

    Read MoreRead Less
  • 08/31/2021
  • View Court Documents
  • Docket(#1) COMPLAINT No Fee Required - US Government, filed by Plaintiff Securities and Exchange Commission. (Attorney Amy J. Longo added to party Securities and Exchange Commission(pty:pla))(Longo, Amy) (Entered: 08/31/2021)

    Read MoreRead Less
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