Lee Vaccaro, Investment Fraud, New Jersey 2023

A Nevada man has been sentenced to six and a half years in prison for swindling investors out of over $5 million in a brazen investment scam. Lee Vaccaro, 45, of Las Vegas, pled guilty to conspiracy to commit securities fraud and securities fraud in federal court in Newark.

According to investigators, Vaccaro was the chief marketing officer and vice president of investor relations for eAgency, a California-based firm developing mobile security products. He and a co-conspirator, identified as "Conspirator #1," sold investors interests in companies they controlled, falsely claiming the companies held warrants in eAgency. Warrants are derivative securities that grant the holder the right to purchase common stock at a specific price within a certain time frame.

Vaccaro and his co-conspirator allegedly created and presented to investors forged documents purporting to reflect the issuance of warrants to entities controlled by Vaccaro, and the transfer of those warrants to a company controlled by Conspirator #1. However, most of the eAgency warrants purportedly transferred had never been issued. Starting in January 2011, the dollar amount of interests Vaccaro and Conspirator #1 sold surpassed the dollar amount of valid warrants held by the investment companies, without disclosing the risk of investment dilution to investors.

The scam ultimately defrauded investors of more than $5 million. In addition to the prison term, Vaccaro was ordered to serve three years of supervised release. U.S. Attorney Paul J. Fishman credited special agents of the FBI, along with the U.S. Securities and Exchange Commission’s New York Regional Office and the New Jersey Bureau of Securities, for their assistance in the investigation.

Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark represented the government in the case. Those who believe they are victims of the alleged scheme or have information are encouraged to contact the FBI at 973-792-3000.

The sentencing is the result of efforts by the Financial Fraud Enforcement Task Force, a coalition of law enforcement, investigatory, and regulatory agencies working to combat financial crimes. Since its formation, the task force has made significant strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state, and local authorities, and addressing discrimination in the lending and financial markets.

Vaccaro’s crimes will not go unpunished. The Grimy Times will continue to bring you updates on this case and other high-profile investigations.

Related Federal Cases