5 May AtoZForex, Vilnius - The U.S. Securities and Exchange Commission, SEC charges two brokers for pocketing about $6 million funds of 100 investors. The brokers claimed the funds for the purpose of purchasing stocks of a startup technology firm. Yet, the money was raised through their own limited liability companies and claims to possess over permits for purchasing the interested stocks.
As reported by SEC, James Trolice and Lee Vaccaro are alleged to have raised over $6 million through manipulating the investors. James Trolice and Lee Vaccaro Scam offers were promoted in a time-sensitive and exclusive offer. Convincing potential investor that there were only limited warrants available at a profitable price. SEC charges two brokers, as both individuals are not registered to offer these investment advices.
SEC charges two brokers for false claims
James Trolice was also suspected in attracting creditors by hosting various investor parties and advertising his claimed successful experience in turning startup firms into public trading companies. James Trolice misused the raised funds, as he utilized it for his private bills and mortgage. Meanwhile, Vaccaro spent the investors’ funds on gambling. The director of SEC, Andrew Calamari commented the following about the brokers' scam:
“We allege that Trolice and Vaccaro lied to investors about the nature of the investment, created a phony aura of success, and ultimately funded their own lifestyles rather than investing all the money as promised. The SEC continues to pursue and investors should continue to be aware of unregistered brokers selling investments.’’
A third accomplice caught
Trolice and Vaccaro were not the only persons who have been alleged by SEC. The regulator discovered that the two were collaborating with Patrick Mackaronis, who earned commissions for bringing in potential leads. Today, the New Jersey court announced criminal charges against James Trolice, Lee Vaccaro and Patrick Mackaronis for the involved scam.
Meanwhile, Patrick Mackaronis has already agreed to SEC’s charges. As he returned the $85,000 earned through commissions, along with the interest on this sum of $8,486.91 and the penalty of $50,000. Information, in regards to the charges against James Trolice and Lee Vaccaro, has not been disclosed yet.
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