Teen Accused in Scam Misses SEC Deadline for Documents

U.S. securities regulators said Monday that the Mission Viejo teenager accused of running an elaborate Internet scam missed a Monday deadline in which he had agreed to provide a complete accounting of his operation.

The Securities and Exchange Commission last month alleged that Cole Bartiromo, 17, bilked investors worldwide out of more than $1 million through the “Invest Better 2001” Web site. In a partial settlement of the SEC’s civil securities fraud complaint, Bartiromo, without admitting or denying guilt, agreed to turn over about $900,000 that had been transferred to an account at an overseas casino and provide a list of all bank accounts by Monday.

SEC officials said Bartiromo had not submitted any of the required documents to the federal agency by 9 p.m. EST. Alexander Vasilescu, an SEC attorney in New York, also said no paperwork seeking an extension of the deadline had been filed on Bartiromo’s behalf.

SEC officials declined to say what consequences the Trabuco Hills High School senior faced because of the lapsed deadline. Vasilescu said the accounting is necessary to determine two issues: what type of civil penalty awaits Bartiromo and the total funds he will have to disgorge as the SEC probe continues. Bartiromo has handed over more than $1 million he had deposited in a Costa Rica casino account, according to investigators. The SEC has not named any other defendant in the case, although in its complaint the agency listed 10 “John Doe’s” along with Bartiromo.

Officials at the SEC alleged that Bartiromo’s scheme operated between Nov. 1 and Dec. 15 and involved claims of sure-fire bets on sporting events.

“A truthful accounting would help assess the total amount of ill-gotten gains,” Vasilescu said. “And as of now, we are not convinced we have the total assets acquired by Invest Better 2001.”

Bartiromo’s attorney, David Bayless of San Francisco, could not be reached. Calls to Bartiromo’s home were not returned.