Ex-Middletown Fire Chief Vincent Falci Convicted In Ponzi Scheme

MIDDLETOWN, NJ — The former Middletown fire chief turned investment banker — who relied on his many contacts in the community to drum up business — was convicted Thursday, Dec. 13 of running a Ponzi scheme, and stealing more than $10 million in investor money.

Vincent Falci, 59, of Middletown, was convicted of all four counts that he had previously been indicted for: Three counts of wire fraud and one count of securities fraud. He was found guilty after a brief, two-week trial in Trenton federal court. The jury deliberated for just 90 minutes before returning the "guilty" verdict.

Federal prosecutors say that Falci controlled a number of investment funds under the names “Saber Funds” and “Vicor Tax Receivables LLP.” The Saber Funds were a collection of investment funds that Falci created and operated, starting in the early 2000s. Many of his earliest victims were friends, family and associates. Because Falci served as a fire chief in Middletown, some of the victims were police officers and firemen and some of the money he stole included retirement funds for first responders.

The Saber Funds grew to have more than 200 investors from whom the defendant raised more than $10 million.

Falci falsely told investors that the Saber Funds were conservatively invested in tax liens – which generated high returns with little risk. In reality, Falci diverted investor money to himself, his family, and to other companies he controlled. Some of the diverted funds were used for riskier ventures, such as day trading and real estate. Falci concealed losses and his own theft from investors. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.

In early 2012, Falci started the Vicor Fund, targeting wealthier investors with greater sophistication in financial affairs. The investors in the Vicor Fund included financial industry professionals, and Falci ultimately raised $20 million from these victims. He again falsely represented that he had experience and a track record of success investing in tax liens, and promised that he could produce high rates of return with little risk. In reality, the assets of the Vicor Fund were rapidly depleted by Falci’s theft.

In order to support his own lifestyle and repay investors the gains he had promised, Falci stole more than $10 million from the Vicor Fund between 2012 and 2016. At the same time, he reported fake investment gains to his investors on monthly statements. Falci concealed his theft in several ways, including by diverting funds to a fake company that he created to steal from investors. He also forged emails and reports, and created fake assets for the fund.

Falci is facing up to 20 years in prison and a $5 million fine. Sentencing is scheduled for March 21, 2019.

Ongoing Patch reporting on Middletown's Vincent Falci scandal: Ex-Middletown Fire Chief In Trouble Again; Feds Say He Ran Ponzi Scheme

Middletown Couple, Son Must Pay $6.7 Million To Defrauded Investors, State Says

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