Middletown investment advisor allegedly cheated clients in one fund, then another
An investment manager who admitted in 2015 that he misled clients and misappropriated money through one of his firms, is now accused of covering the damage by raiding his other firm.
Vincent P. Falci, 57, of Middletown, appeared in a Newark federal courtroom today to answer to two charges of wire fraud and one count of securities fraud, according to the office of New Jersey U.S. Attorney Paul J. Fishman.
Falci managed investments through the Saber Funds and Vicor Tax Receivables LLP (The Vicor Fund).
Prosecutors said that he conned clients into thinking that their portfolios were conservatively-based in tax liens and other securities reflecting positive growth, while plunging the money into day trading, real estate and other higher-risk ventures, losing most of it and concealing it from investors.
On September 18, 2015, in a consent order with the New Jersey Bureau of Securities, Falci admitted misleading investors and paying himself and family members more than $1,000,000 between 2006 and 2009.
He was ordered to pay $6,742,697.57 in restitution, and to divest controlling interest in all funds and management entities.
Investigators allege that Falci took at least $5,300,000 to pay Saber Fund investors from Vicor Fund accounts, which he controlled through Vidon Capital Partners LLC, and set aside more than $500,000 for himself and his family.
Each charge carries a possible prison sentence of up to 10 years, and $250,000 fines, on conviction.
Falci is represented by Staten Island-based attorney Joseph Sorrentino. The government's case is being handled by Assistant U.S. Attorney Justin Herring.
Charges are accusations. Defendants are presumed innocent unless, and until, found guilty in a court of law.