A New Jersey investment manager, Vincent P. Falci, has been convicted for operating a $10 million Ponzi scheme that took millions from friends, family, and associates. The advisor controlled two investment vehicles, Saber Funds and Victor Tax Receivables LLP, which were used in the scheme.
A Trenton, New Jersey jury found Falci, 59, guilty of three counts of wire fraud and one count of securities fraud.
Saber Funds Ponzi Scheme
Dating back to the early 2000s, Falci convinced clients to invest in Saber Funds and Victor Tax Receivables LLP and then diverted the funds to himself, his family, and other companies he controlled. Some of that money was used for day trading and real estate purchases.
According to court documents, Saber Funds and Victor Tax Receivables LLP purportedly invested in tax liens, which generate high returns with minimal risk. Yet the funds actually were drained by Falci’s continuous theft.
To cover his misdealings, Falci provided investors with bogus monthly statements reporting purported investment gains, forged emails and reports, and diverted funds to a fake company that he also created. Â
According to the prosecutor, between 2012 and 2016, Falci stole more than $10 million from the Victor Fund to pay for his lifestyle and to repay investors.
Advisor Faces Time for Saber Funds Ponzi Scheme
According to the sentencing guidelines, Falci faces up to 20 years in prison and a $250,000 fine for each wire fraud charge, and up to 20 years in prison and a $5 million fine for the securities fraud charge. Sentencing has been scheduled for March 21.
The Bureau of Securities previously lodged a civil action against Falci, and his family, securing a $6.7 million restitution judgment.
In addition to functioning as an investment advisor, Falci is also the former fire chief of Middletown, New Jersey, where he lives. Â
Have You or Someone You know Lost Money as a Result of Stockbroker Misconduct?
Brokerage firms are legally required to supervise their brokers. If you or someone you know lost money as a result of stockbroker misconduct, contact an experienced investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today.
Speak with a Ponzi Scheme Attorney
The securities fraud attorneys at Dimond Kaplan & Rothstein, P.A. (DKR) bring civil court cases and arbitration cases on behalf of investors who suffered financial losses in Ponzi schemes throughout the United States. Our interest is in helping our clients recover their money.
If you are looking for a Ponzi scheme attorney to review your rights and options, the Ponzi scheme lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of Ponzi schemes. We will aggressively pursue claims to recover your losses or damages.
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