FA Charged over Million-Dollar Senior Fraud Scheme
The U.S. Attorney’s Office has charged a former Waterbury, Conn., financial advisor with money laundering and two counts of fraud over a scheme targeting elderly clients, FA magazine writes.
Leon Vaccarelli was indicted in U.S. District Court in Connecticut for filching more than $1 million from nine clients, several of whom were elderly, and using the funds to cover personal expenses, including mortgage payments, the SEC says, according to the publication.
The scheme, which also involved Vaccarelli’s two companies, Lux Financial and LWLVACC, both named in the complaint, went on from 2012 to 2017, according to the regulator, FA magazine writes.
In one instance Vaccarelli allegedly requested a client sign an agreement to not furnish information to Finra and the SEC about her finances, according to the publication. In another Vaccarelli took $300,000 from an elderly woman in a nursing home to pay back another investor, according to the complaint cited by FA magazine.
The SEC was also investigating Vaccarelli, a former registered representative of The Investment Center and a former investment advisor with IC Advisory Services, in connection with the same scheme, FA magazine writes.
The two firms fired him last summer, the SEC says, according to the publication. And the year before that, Finra fined Vaccarelli $7,500 for violating one of its rules, FA magazine writes.