On Thursday, August 31, 2017, the SEC charged a Connecticut-based broker and investment adviser and his company with fraudulently convincing several elderly consumers to invest with him and then using their money for personal purposes. Leon Vaccarelli has been charged with fraudulently persuading elderly customers to invest with his business and then using their money for living and business expenses.

The SEC alleges that Vaccarelli deposited the clients’ money into his personal and business bank accounts, instead of investing the money in conventional brokerage accounts or separately managed accounts. The defendant is also accused of commingling the funds and using the money for personal purposes. In some cases, the SEC claims that Vaccarelli used some customer funds to repay earlier investors.

According to the complaint, the defendant asked one client to sign an agreement promising not to provide certain information to the SEC or FINRA. The SEC alleges that Vaccarelli sold more than $450,000 in securities from a trust for the care and maintenance of a beneficiary. Some of the proceeds was supposedly used to pay the defendant’s business and personal expenses.

The Securities and Exchange Commission has accused Vaccarelli of defrauding his clients of more than $1 million. The agency will attempt to seek an asset freeze against the defendant, Lux Financial Services, and LWLVACC LLC.

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