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U.S. Attorney: Fairfield Man Admits To Securities Fraud In New Jersey Court

A Fairfield man will be sentenced for securities fraud on July 20.
A Fairfield man will be sentenced for securities fraud on July 20. Photo Credit: Courtesy Flickr User eviltomthai

FAIRFIELD, Conn. — A Fairfield man admitted in a New Jersey court defrauding investors out of more than $5 million, acting U.S. Attorney William E. Fitzpatrick announced Tuesday.

James Trolice, 63, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a two-count information charging him with securities fraud and transacting in criminal proceeds.

According to documents filed in this case and statements made in court, Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products.

Trolice and Lee Vaccaro, 45, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency, according to court records.

Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.

Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency, according to court records.

Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies, according to court records.

Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million, court records said.

The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The transacting in criminal proceeds count carries a maximum potential of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Sentencing is scheduled for July 20, 2017.

Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 months in prison.

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