Vincent P. Falci (“Falci”) of Middletown, his wife, Donna Falci, also of Middletown, and their son, Vincent N. Falci, of Wall Township, and various investment companies that Falci created and operated, must collectively disgorge and pay $6.7 million in full restitution to defrauded investors as the result of legal action brought by the New Jersey Bureau of Securities.
Falci also was assessed $800,000 in civil penalties and permanently barred from working in the securities industry in New Jersey.
Falci, a former fire chief with Monmouth County, and his companies committed multiple violations of the State’s Uniform Securities Law.
Among other things, Falci – an unregistered agent – and his companies made false and misleading statements to 182 investors in connection with the sale of unregistered securities. Specifically, Falci created and provided investors with annual updates that purported to show that their money had primarily been invested in tax certificates as promised. In reality, the majority of money raised from investors was not invested in tax lien certificates, but was used toward the purchase of, among other things, seven homes by Falci and his wife, Donna. Only 3% of investors’ funds were actually invested in tax lien certificates.
In addition to making false statements regarding how much of investor funds had been invested in tax certificates, Falci promised investors a 7% rate of return based on fictitious previous year results.
The investment companies and funds created and controlled by Falci included Saber Funds LLC; Saber Funds Distributors, LLC; Saber Asset Management, LLC; Fixed Term Government Fund, LLC; MSI Fund I, LLC; MSI Fund II, LLC; BWX Fund, LLC; Preferred Income Portfolio, I; Phoenix Equities, LLC; and Hallus Realty Group, LLC. Donna Falci was a part owner of Saber Asset Management, LLC and Saber Funds, LLC while son Vincent N. Falci was a part owner of Hallus Realty Group, LLC and Phoenix Equities, LLC.
If all terms of the Consent Order and Final Judgment are met, $217,500 of the $800,000 civil penalty will be suspended.
The Bureau of Securities can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600. The public is encouraged to visit the Bureau’s website at www.njsecurities.gov.