Fairfield Man Admits Role In $5 Million Investment Fraud Scheme: Feds

FAIRFIELD, CT — A Fairfield man admitted in New Jersey federal court this week his role in defrauding investors out of more than $5 million, according to authorities.

James Trolice, 63, of Fairfield, pleaded guilty to a two-count information charging him with securities fraud and transacting in criminal proceeds, Acting U.S. States Attorney William E. Fitzpatrick, of New Jersey, announced in a press release.

According to documents filed and statements made in court, Trolice was the president and owner of Trolice Consulting Services LLC in New Jersey and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products.

Trolice and Lee Vaccaro, 45, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency, according to Fitzpatrick. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.

“Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency,” Fitzpatrick wrote in the press release. “Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies.

“Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.”

The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The transacting in criminal proceeds count carries a maximum potential n and a $250,000 fine, or twice the gross gain or loss from the offense.

Trolice is scheduled to be sentenced on July 20.

Vaccaro previously pleaded guilty to his role in the scheme and was sentenced in February to 78 months in prison.

Image via Shutterstock

See also:

• Jail Time For Crash That Killed Young Mother; 'White Privilege' Essay Winners; $100K Lottery Winner Unclaimed: CT News