Connecticut Advisor Charged In $1M Ponzi Scheme

Sept. 01--Federal securities regulators on Thursday charged a Waterbury-based financial advisor with defrauding clients out of more than $1 million.

The U.S. Securities and Exchange Commission filed a 16-page complaint in U.S. District Court in New Haven claiming that 40-year-old Leon Vaccarelli of Waterbury and a limited liability investment company he operated engaged in a Ponzi scheme for more than four years. The complaint contends that Vaccarelli and his Waterbury-based investment firm used money from new investors to pay off prior ones.

The complaint also contends that Vaccarelli used some of the money he was given by investors to pay for personal expenses and that he stole money from a trust fund while he was serving as a trustee.

The SEC complaint says at least nine clients, many of whom were elderly, were defrauded by Vaccarelli.

The agency is asking the court to freeze Vaccarelli's assets as well as those associated with Lux Financial Services. The SEC is asking the court to force Vaccarelli to repay all of the money that he defrauded from clients plus interest and penalties.

Vaccarelli does not have a listed telephone number and could not be reached for comment.

Call Luther Turmelle at 203-680-9388.

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