UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Leon Vaccarelli ("Respondent" or "Vaccarelli"). The Commission finds that on May 29, 2019, Vaccarelli was found guilty by a jury after a criminal trial of twenty-one counts of mail fraud, wire fraud, securities fraud, and money laundering in violation of Title 15 United States Code, Sections 78j(b) and 78ff and Title 18 United States Code, Sections 1341, 1343, and 1957 before the United States District Court for the District of Connecticut in United States v. Leon Vaccarelli, Case No. 3:18-cr-00092. On October 30, 2020, a judgment in the criminal case was entered against Vaccarelli. He was sentenced to a prison term of 90 months and ordered to make restitution in the amount of $1,456,632.77. The counts of the indictment in the criminal case in which Vaccarelli was found guilty alleged, inter alia, that Vaccarelli falsely represented to investors that he would invest their money in various investment opportunities and, instead of investing the money as represented, deposited it into his own bank accounts and used it to pay his business and living expenses. The indictment also alleged that Vaccarelli sold securities in a trust for which he served as trustee and used a significant portion of the proceeds for his own personal benefit. On June 29, 2023, the U.S. District Court for the District of Connecticut issued a summary judgment wherein Vaccarelli was permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10-5 promulgated thereunder; permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933, directly or indirectly; and permanently restrained and enjoined from violating Exchange Act Rule 21F-17(a). It was further ordered, adjudged, and decreed that Vaccarelli is liable for disgorgement of $1,419,331 representing profits gained as a result of the conduct alleged in the Complaint, plus prejudgment interest of $99,610 thereon, for a total of $1,518,941. This amount is offset by $1,456,632, the amount of the Order of Restitution entered in the related case, United States v. Vaccarelli, Case No. 3:18-CR-92 (see above).

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

indefinite

1/3/2025

Misappropriation of funds.

$300,000.00

$350,000.00

Mail Fraud

Convicted

Wire Fraud

Convicted

Money Laundering

Convicted

CONVERSION AND CIVIL THEFT

$45,000.00

$45,000.00

CONVERSION AND CIVIL THEFT.

$100,000.00

$116,000.00

CONVERSION AND CIVIL THEFT

$100,000.00

$80,000.00

CONVERSION AND CIVIL THEFT

$50,768.00

$50,728.98

Losses in connection to a REIT purchased prior to Mr. Vaccarelli's association with The Investment Center, Inc.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission (the "Commission") alleges the following against Leon Vaccarelli ("Vaccarelli") individually and doing business as Lux Financial Services ("Lux Financial") and LWLVACC, LLC. ("LWLVACC") (Collectively, "Defendants"). Vaccarelli (individually and doing business as Lux Financial) and his limited liability company LWLVACC, misappropriated and misused investment funds they obtained from clients and customers. Vaccarelli also stole money from a trust fund for which he was the trustee, while he was a registered representative with The Investment Center ("TIC") as well as an investment adviser associated with IC Advisory Services, Inc ("IC Advisory"). In some instances, Vaccarelli persuaded several of his brokerage customers to invest in notes and/or other investments that he offered for sale. In other instances, Vaccarelli falsely represented that customers' money would be invested in their investment accounts at the brokerage company with which Vaccarelli was affiliated. In some instances, Vaccarelli persuaded customers to fund such investments with money from their existing investment accounts at the brokerage company. In other instances, Vaccarelli persuaded customers to sell other investments, such as annuities, to fund their purchases of notes. On multiple occasions, instead of investing customers' funds as he represented, Vaccarelli deposited customer funds into his own personal and business bank accounts, commingled those funds with his own money and paid living and business expenses. In some instances, he also used customer funds to pay back prior investors. Between late 2012 and mid-2017, Vaccarelli obtained in excess of $1 million from at least nine investors, several of whom were elderly. As a trustee, Vaccarelli sold more than $450,000 in securities that were held in trust for the care and maintenance of a beneficiary. Vaccarelli used some of this money to pay business and personal expenses, including home mortgage payments. Through Vaccarelli's conduct, Defendants have violated and, unless enjoined, will continue to violate provisions of Section 17(a) of the Securities Act of 1933 (the "Securities Act"); Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rules 10b-5 and 21F-17(a) thereunder.

Judgment Rendered

Disgorgement

$1,419,331.00

Monetary Penalty other than Fines

Injunction

Transfer of account balances

Conversion and Civil Theft

$79,874.42

$80,000.00

The Investment Center, Inc.

Discharged

Mr. Vaccarelli, through his attorney, failed to comply with company policy regarding access to his office and computer during an examination.

THE INVESTMENT CENTER INC

Discharged

MR. VACCARELLI, THROUGH HIS ATTORNEY, FAILED TO COMPLY WITH COMPANY POLICY REGARDING ACCESS TO HIS OFFICE AND COMPUTER DURING AN EXAMINATION.

FINRA

Without admitting or denying the findings, Vaccarelli consented to the sanctions and to the entry of findings that he exercised discretion in customers' accounts notwithstanding the fact that he did not have written authorization from the customers to place discretionary trades and his member firm had not approved and accepted the accounts as discretionary. The findings stated that Vaccarelli also falsely certified that he did not handle any retail (non-advisory) customer accounts on a discretionary basis on four annual firm compliance questionnaires.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$7,500.00

Suspension

any and all capacities

one month

12/21/2015

1/20/2016

Fine paid in full on February 17, 2016.

CLIENT ALLEGED THE REIT INVESTMENT SHE MADE IN SEPTEMBER 2004 WAS MISREPRESENTED TO HER.

$25,000.00

CLIENT ABSOLUTELY WAS AWARE OF THE FEATURES, BENEFITS, RISKS, LIQUIDITY AND OVERALL ATTRIBUTES OF THE WP CAREY GLOBAL 16 REIT. THE INVESTMENT MET ALL SUITABILITY REQUIREMENTS AS SHE WAS 71 AT THE TIME AND MYSELF AND MY COMPLIANCE OFFICER SPENT EXTRA TIME WITH HER AS IS A BEST PRACTICE WHEN DEALING WITH SENIOR CITIZENS. I STILL HAVE NOTES IN THE FILE FROM THE INVESTMENT AND SHE WAS QUITE PLEASED AND FULLY AWARE AT THE TIME OF MAKING THE INVESTMENT. SHE SHOULD BE PLEASE AS SHE STILL HAS THE INVESTMENT AND ITS CURRENT VALUE IS $23,000 AND ITS CURRENT YIELD IS 6.2%. WHEN SHE MADE THE INVESTMENT THE YIELD WAS 4.5%. SINCE SHE MADE THE INVESTMENT SHE HAS RECEIVED OVER $10,000 IN QUALIFIED DIVIDENDS. THAT PLUS THE CURRENT MARKET VALUE ADDS UP TO MORE THAN $33,000. CLIENT HAS NOT LOST ANYTHING AND SHE CAN CASH OUT AT ANYTIME WITH A PROFIT. THE COMPLAINT IS OUTRAGEOUS AND WITHOUT MERIT.

$223.00

Civil

THE CLIENT STATES HER ANNUITY WAS NOT MANAGED APPROPRIATELY, AND IT DID NOT PERFORM AS WELL AS AN ANNUITY THAT WAS WELL MANAGED. THE CLIENT IS ASKING FOR A WAIVER OF THE SURRENDER CHARGE.

$7,800.00