Vincent P. Falci, 57, of Middletown, New Jersey, is facing federal charges for allegedly running a $5.3 million Ponzi scheme that preyed on investors’ trust for years. The investment manager used funds from one account to cover losses in another while siphoning off more than half a million dollars for himself and his family, prosecutors say. Falci made his initial appearance in Newark federal court today, charged with two counts of wire fraud and one count of securities fraud.
Falci controlled a network of investment vehicles, including the Saber Funds and Vicor Tax Receivables LLP, operating through his firm Vidon Capital Partners LLC. He falsely claimed the funds were conservatively managed and generating steady returns. In reality, he funneled investor money into high-risk day trading and real estate ventures that lost value — then concealed those losses. Investors were misled into believing their assets were growing, prompting them to pour in more capital.
The scheme began unraveling in September 2015 when Falci entered a consent order with the N.J. Bureau of Securities, admitting to violations of state securities laws. He acknowledged misleading investors and paying himself and relatives over $1 million between 2006 and 2009. The order required him to pay $6,742,697.57 in restitution and to divest control of all managed funds and entities — a directive he ignored.
Despite that order, Falci continued to manipulate the Vicor Fund, stealing $5.3 million between January 2015 and May 2016. Most of the stolen money was used to fake returns for earlier investors in the Saber Funds, a classic Ponzi tactic. Over $500,000 was funneled directly to Falci and his family members, prosecutors allege. Bank accounts under Vidon Capital remained under his control, allowing the theft to continue unchecked.
Each count in the federal complaint carries a maximum penalty of 10 years in prison and a $250,000 fine. The charges are the result of a joint investigation by the U.S. Postal Inspection Service and the N.J. Bureau of Securities. U.S. Attorney Paul J. Fishman emphasized that the case reflects a pattern of deception and betrayal of fiduciary duty. Assistant U.S. Attorney Justin Herring is prosecuting the case.
The defendant is presumed innocent until proven guilty. The N.J. Bureau of Securities is separately moving to enforce the 2015 consent order in state court. Defense counsel Joseph Sorrentino, of Staten Island, New York, represents Falci. The case underscores ongoing vulnerabilities in private investment oversight and the long reach of federal prosecutors in financial fraud cases.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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