SEC Charges Brokers For Pocketing $6 Million In Investor Money
Posted: Tue May 03, 2016 6:00 pm
The United States’ Securities and Exchange Commission (SEC) today charged two unregistered brokers with pocketing investor money raised for limited liability companies owned and controlled by them which supposedly held warrants to purchase the common stock of a technology startup company.
Brokers Attracted Investors By Showcasing Their Wealth
According to the SEC, James Trolice and Lee Vaccaro are alleged to have raised around $6 million from over 100 investors by creating a false sense of urgency and exclusivity around the offering. They claimed that only a limited amount of warrants were available and that they could eventually be exercised at a very ... (read more)