A jury concluded this week that a Waterbury man who worked as an investment adviser defrauded clients out of $1.5 million.
Leon C. Vaccarelli, 42, was found guilty of 21 counts, including mail fraud, wire fraud, securities fraud and money laundering, in a trial before U.S. District Court Judge Janet Bond Arterton in New Haven.
Vaccarelli is free on $100,000 bond pending his sentencing Aug. 22.
Vaccarelli was a registered representative of the Investment Center, a brokerage company, and an investment adviser associated with IC Advisory Services Inc. He also owned the Middlebury-based LWLVACC LLC, and he conducted business through Lux Financial Services of Waterbury.
According to the U.S. Attorney’s office, Vaccarelli gave clients investment advice, and he sold investments and securities to clients throughout the Waterbury area.
The government claimed Vaccarelli defrauded about 15 victims out of $1.5 million over a period of six years, from about 2011 to 2017. Prosecutors claim he told clients he would invest their money in IRA rollover accounts, money market accounts, and certificates of deposit, but instead used the money for his own benefit. The money went toward personal expenses such as tuition and mortgage payments, according to the U.S. Attorney’s office.
The victims included individuals from a range of professions, including a retired teacher, a retired construction worker and medical professionals.
Vaccarelli was accused of convincing an elderly woman to transfer about $300,000 from a safe investment portfolio into an account which Vaccarelli controlled. Vaccarelli used the money for personal expenses and to pay off an investor who was threatening to sue him. Vaccarelli also stole nearly $500,000 from a trust established in 1991 to care for a disabled woman, according to the U.S. Attorney’s office.
Attorney Jonathan Einhorn of New Haven, who represents Vaccarelli, said his client is saddened by the verdict and intends to appeal.
The defense asserted in documents to the court that Vaccarelli’s “alcoholism rendered him incapable of forming the requisite intent for these offenses.”
“We believe his conduct was caused by his severe alcohol-use disorder,” Einhorn said.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com
