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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23859 / June 15, 2017

Securities and Exchange Commission v. James R. Trolice, et al., 16-CV-02513 (D.N.J. filed May 4, 2016)

SEC Obtains Judgment Against James R. Trolice And Trolice Pleads Guilty to Federal Criminal Charges

On June 13, 2017, the Honorable William J. Martini of the United States District Court for the District of New Jersey entered a judgment against defendant James R. Trolice that imposed permanent injunctions and an officer and director bar.

The SEC's complaint, filed on May 4, 2016, alleged that Trolice and Lee P. Vaccaro pocketed the approximately $6 million they raised from more than 100 investors for limited liability companies they owned and controlled that purportedly held warrants to purchase the common stock of a technology startup company. Trolice and Vaccaro created a false sense of urgency and exclusivity around the offering, claiming that only a limited amount of warrants were available and that they eventually could be exercised at a very profitable price. The complaint further alleged that Trolice lured investors by showcasing his apparent wealth and hosting elaborate investor parties at his multi-million-dollar home. He also touted his purported track record of bringing startup companies public and obtaining high returns for investors. Meanwhile, Trolice allegedly used investor funds to pay his mortgage along with other bills for a credit card, car lease, college tuition, and landscaping.

The judgment permanently enjoins Trolice from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition, the judgment bars Trolice from serving as an officer or director of a public company. Trolice consented to the entry of the judgment. The district court will determine monetary sanctions.

On April 4, 2017, Trolice pled guilty to federal criminal charges for securities fraud and money laundering in a parallel criminal action before the District Court for the District of New Jersey in United States v. Trolice, 2:17-cr-00120-WJM and consented to a judgment of forfeiture in the sum of $5,000,512.65. Sentencing is scheduled for July 20, 2017.

For further information, see Litigation Release Nos. 23532 (May 5, 2016), 23562 (June 9, 2016), and 23651 (September 22, 2016).

 

https://www.sec.gov/litigation/litreleases/2017/lr23859.htm


Modified: 06/15/2017