$5 Million Swindle: Trolice Admits Role in Investment Fraud

NEWARK, N.J. – A former resident of Alpine, New Jersey, has confessed to fleecing investors out of more than $5 million in a brazen investment fraud scheme. James Trolice, 63, of Fairfield, Connecticut, pleaded guilty today before U.S. District Judge William J. Martini, admitting his culpability in a two-count information charging him with securities fraud and transacting in criminal proceeds. The feds say Trolice and his accomplice built a house of cards on lies and investor trust.

According to court documents and statements made during the proceedings, Trolice served as president and owner of Trolice Consulting Services LLC and also held the position of president and chief marketing officer at eAgency, a California-based mobile security firm. He teamed up with Lee Vaccaro, 45, of Las Vegas, to hawk interests in Trolice Consulting Services and Vaccaro’s own companies, falsely claiming these holdings included warrants – the right to buy stock at a set price – in eAgency. This was the core of the con.

Trolice admitted to a litany of misrepresentations, both spoken and written. He lied about the existence, quantity, validity, and lifespan of the eAgency warrants, the amount of his own investment in the company, and his actual role within eAgency. The scheme escalated in January 2011, with the value of sold interests exceeding the number of legitimate warrants held, a critical imbalance Trolice and Vaccaro conveniently failed to disclose to investors. They kept selling, knowing the foundation was crumbling.

The pair systematically defrauded investors of over $5 million. Trolice now faces a maximum sentence of 20 years in prison and a $5 million fine for the securities fraud count. The charge of transacting in criminal proceeds carries a potential penalty of up to 10 years behind bars and a $250,000 fine – or twice the profit from the illegal operation. Sentencing is slated for July 20, 2017. Vaccaro already took a hit, receiving 78 months in prison on February 17, 2017, for his part in the scheme.

Acting U.S. Attorney William E. Fitzpatrick credited the FBI, led by Special Agent in Charge Timothy Gallagher, and IRS-Criminal Investigation, under Special Agent in Charge Jonathan D. Larsen, with the investigation. Assistance was also provided by the U.S. Securities and Exchange Commission’s New York Regional Office and the New Jersey Bureau of Securities. Assistant U.S. Attorneys Daniel Shapiro and Deputy Chief Zach Intrater are prosecuting the case.

Anyone believing they were victimized by this scheme is urged to contact the FBI at 973-792-3000. This case is part of the broader Financial Fraud Enforcement Task Force, a massive coalition of over 20 federal agencies, 94 U.S. attorneys’ offices, and state/local partners dedicated to aggressively combating financial crimes. Since 2009, the Justice Department has filed over 18,000 financial fraud cases, bringing over 25,000 individuals to justice.