Former New Jersey Fire Chief To Pay $6.7M For Securities Fraud

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Former New Jersey Fire Chief To Pay $6.7M For Securities Fraud

Vincent P. Falci, a former New Jersey fire chief, his wife, his son, and the companies he started have been ordered to repay $6.7 million they bilked from investors. Fallacy and his companies made false and misleadings statements to 182 investors, according to a release from Acting Attorney General John J. Hoffman.

Falci created and provided investors with annual updates that purported to show that their money had primarily been invested in tax certificates as promised, according to the release.  In actuality, most of the money raised from investors was spent elsewhere, including seven homes by Falci and his wife, Donna.  Only three percent of investors’ funds were actually invested in tax lien certificates.

In addition to making false statements about how much had been invested in tax certificates, Falci promised investors a seven percent rate of return based on fake previous year results, according to the release.

“To attract investors to his fraudulent scheme – many of whom were firefighters and police officers – Falci promised a high rate of return,” Laura H. Posner, Chief of the Bureau of Securities, said in the release. “Any guarantee of investment results should be viewed with skepticism, especially in a low interest rate environment where lower rates of return are the norm.”

In addition to the $6.7 million restitution, Falci was ordered to pay $800,000 in civil penalties and permanently barred from working in the securities industry in New Jersey, the release said.

“This judgment is a significant result for those investors who received false promises and invested in the Falci-controlled companies,” Attorney Hoffman said in the release.  “Funds that were originally diverted for personal use will now be returned back to investors and Vincent P. Falci will no longer be working in New Jersey’s securities industry as a result of the work of the Bureau of Securities.”

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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