SEC Charges Connecticut Based Investment Advisory Firm With Stealing Investor Funds

Posted on February 6th, 2017 at 9:07 AM
SEC Charges Connecticut Based Investment Advisory Firm With Stealing Investor Funds

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Securities and Exchange Commission has charged a Connecticut-based investment advisory firm, Sentinel Growth Management and its founder Mark J. Varacchi with stealing money from investors.

The SEC alleges that Mr. Varacchi misrepresented to investors that the money they invested would be given to up-and-coming hedge fund managers for investment purposes.  However, Mr. Varacchi never transferred the money as promised. He instead commingled investor assets and manipulated account activity, account balances, and investment returns.

In all, Mr. Varacchi allegedly stole at least $3.95 million from investors, including $1 million to settle a lawsuit brought by his former employer. The SEC’s complaint seeks disgorgement and penalties against Mr. Varacchi and Sentinel Growth Fund Management.  

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial investors including Securities FraudUnauthorized TradingBreach of Fiduciary DutyRetirement Planning Negligence, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, SEC, investment advisory firm, investor funds, Sentinel Growth Management, Mark J. Varacchi, investors, misrepresented, hedge fund managers, account activity, account balances, investment

Return to Archive



You guys are good!

Mike L.


May 19, 2022
UBS Advisor Joins U.S. Capital After Contentious Compliance Review

A UBS Wealth Management advisor who generated $3 million in annual revenue has joined U.S. Capital Wealth Advisors, which is a regional Texas-based firm run by a former UBS manager.

May 18, 2022
Some Advisors Chose Inopportune Time To Boost Bet On GWG Bonds

Financial advisors who chose to double down on GWG are having second thoughts.

May 17, 2022
Focus Financial Board Member Sues J.P. Morgan Over $7 Million In Pandemic Losses

A California dermatologist, who also is a Focus Financial Partners board member, has filed a $7 million arbitration claim against J.P. Morgan over pandemic-related losses in a managed account.