By Laura Alix

A federal court in Boston last week leveled a $37-million penalty against a scammer and fugitive who bilked investors out of more than $4 million in a boiler room scheme, the Securities and Exchange Commission (SEC) said this week.

According to the SEC, Edward M. Laborio is also now barred from working in many parts of the securities industry and is prohibited from serving as an officer or director of a public company and from participating in any offerings of penny stock.

In August 2012, the SEC filed a complaint against Laborio, Jonathan Fraiman, Matthew K. Lazar, and seven entities owned and controlled by Laborio, including a non-existent hedge fund, alleging that they participated in a boiler room scheme that raised more than $4 million from approximately 150 investors between October 2006 and late August 2009 through the use of false promises and pressurized sales tactics.

Fraiman and Lazar consented to judgments last year barring them from many jobs in the financial services industry.

In August of this year, a federal grand jury in Massachusetts also indicted Laborio and Fraiman on one count each of conspiracy and mail fraud, related to their roles in the boiler room scheme. Fraiman was arrested, but Laborio remains a fugitive.