Assistant Swipes $1.28M from Investors for Gambling and Gadgets!

SEC v. Ellen Polcari — U.S. Securities and Exchange Commission Litigation Release No. 26642, dated September 18, 2026.

The SEC charged Ellen Polcari, a former employee of two venture capital firms, with orchestrating a fraudulent scheme. She allegedly misappropriated approximately $1.28 million from at least 85 investors by directing their funds to her own accounts and selling fund assets. The SEC seeks permanent injunctions, disgorgement, prejudgment interest, and civil penalties.

In Plain English

Imagine you're helping a friend manage their investment club's money. Instead of putting the money into the club's official account, you secretly send it to your own bank account. You then spend some of that money on yourself, like paying bills or going out. You also take some of the club's valuable items (like stocks) and sell them for cash. This is like what Ellen Polcari is accused of doing with money from investors in private funds.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Targeting Investors Ellen Polcari, an employee of two venture capital firms, communicated with potential investors interested in the funds' securities offerings. She acted as the primary contact for these investors.
2. Directing Funds to Controlled Accounts Polcari instructed interested investors to wire their investment money directly to bank accounts that she personally controlled, bypassing the firms' official accounts.
3. Misappropriating Investor Funds Upon receiving the wired investments, or shortly thereafter, Polcari began misappropriating portions of the money. This occurred from at least April 2023 until March 2025.
4. Personal Use of Misappropriated Funds The misappropriated funds, totaling approximately $1.28 million, were used by Polcari for various personal expenditures, including credit card payments, loan payments, online gambling, and purchases at restaurants and retailers.
5. Fraudulent Transfer of Fund Assets In August 2024, Polcari went a step further by fraudulently transferring stock shares belonging to one of the funds directly to herself.
6. Selling Fund Assets for Cash She then sold most of these fraudulently obtained shares in November 2024 to a third-party purchaser, generating $56,000 in cash for herself.
7. Attempted Repeat Scheme Polcari attempted to repeat the fraudulent transfer of fund assets a few months later, but her scheme was uncovered in March 2025, thwarting her efforts.

The Enforcement Action

The SEC charged Ellen Polcari with violating securities laws by orchestrating a fraudulent scheme to misappropriate investor money. The complaint alleges she misappropriated approximately $1.28 million from at least 85 investors between April 2023 and March 2025. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and a conduct-based injunction.

Named in this action: Ellen Polcari.

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