Leon Vaccarelli, a defendant in an ongoing SEC litigation, was indicted on multiple counts of mail fraud, wire fraud, and money laundering in connection with a scheme to defraud investors by representing that he would invest their money in various investment opportunities but instead used the money to pay his own business and personal expenses.
According to the SEC’s complaint, Vaccarelli fraudulently persuaded several elderly customers to invest with him. Instead of investing the customers’ money in such things as conventional brokerage accounts and separately managed accounts as promised, Vaccarelli allegedly deposited customer funds into his personal and business bank accounts.
He allegedly commingled the funds with his own money and used them for his own purposes, and in some instances, used customer funds to pay returns to earlier investors.
According to the SEC’s complaint, Vaccarelli asked one customer to sign an agreement that she would not provide certain information to FINRA or the SEC. He also allegedly sold more than $450,000 in securities that were held in trust for the care and maintenance of a beneficiary and used some of the proceeds to pay business and personal expenses.
The criminal charges against Vaccarelli alleged in the indictment arise from the same conduct alleged in the SEC’s complaint, individually and doing business as Lux Financial Services, and his company, LWLVACC LLC, which were filed in a Connecticut federal court on August 31, 2017.
The SEC previously obtained a temporary restraining order and asset freeze against Vaccarelli and LWLVACC LLC in its ongoing litigation.
Vaccarelli, who held FINRA Series 7 and 66 licenses, was affiliated with The Investment Center Inc. since 2011, until he was discharged for failing to comply with company policy regarding access to his office and computer during an examination. He entered the securities industry as a broker in 1999 and was previously affiliated with QA3 Financial, Ameriprise, and IDS Life Insurance Company.