On May 14, 2018, the Securities and Exchange Commission (SEC) announced that federal prosecutors filed federal criminal charges against Leon Vaccarelli.
A federal grand jury in New Haven, Connecticut returned a 12-count criminal indictment against Vaccarelli for fraud and money-laundering. The charges are in connection with allegations Vaccarelli defrauded individuals out of more than $1 million.
From February 2011 through August 2017, Vaccarelli was a registered representative of The Investment Center, Inc. and an investment adviser of IC Advisory Services. He also owned LWLVACC, LLC and conducted his brokerage and advisory businesses under the name Lux Financial Services.
Between 2011 and 2017, Vaccarelli defrauded clients by promising to invest their funds in conventional investments that he instead used for his personal and business expenses, alleged prosecutors. He allegedly also used client funds to make phony interest payments to other clients. Vaccarelli faces up to 20 years of imprisonment on nine counts and 10 years on three counts.
On August 31, 2017, the SEC filed civil charges against Vaccarelli for the same conduct alleged in the criminal indictment. The SEC seeks money penalties and disgorgement of any ill-gotten gains.
In a prior unrelated regulatory action, the Financial Industry Regulatory Authority (FINRA) suspended Vaccarelli on December 21, 2015 from associating with FINRA member firms for one month. FINRA suspended Vaccarelli for allegedly placing unauthorized trades in four of his customers’ accounts.
According to FINRA records, Vaccarelli’s clients have also accused him of wrongdoing. From August through October 2017, his customers filed seven arbitration claims to recover losses. One claim alleges Vaccarelli recommended an unsuitable investment in a real estate investment trust, and six claims allege he stole client funds. The claims are pending.
The Investment Center allegedly placed Vaccarelli on heightened supervision in 2015 when he was suspended, and it later disclosed it fired him on July 19, 2017 for failing to provide access to his office and computer during a firm examination.
If you suffered losses while investing with Leon Vaccarelli, contact Marquardt Law Office LLC to receive a free case evaluation from a securities attorney. You may be able to recover your losses.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL that represents clients nationwide who have suffered losses due to misconduct such as fraud and negligence.