The Securities and Exchange Commission charged Ellen Polcari, a former employee of two venture capital firms under common ownership, with misappropriating approximately $1.28 million from investors in the firms’ private funds. The complaint, filed September 18, 2026, in the U.S. District Court for the District of New Jersey, describes a scheme that ran from at least April 2023 through March 2025.
What happened
Polcari worked for two venture capital firms under common ownership, each of which advised several private funds. She communicated with prospective investors about the funds’ securities offerings. When investors wanted in, she directed them to wire money to bank accounts she personally controlled rather than to legitimate fund accounts.
Once the money landed, she began misappropriating portions of it almost immediately, according to the SEC. The affected funds collectively raised approximately $28.67 million from at least 85 investors during the period. Beyond the cash, Polcari also fraudulently transferred fund-owned stock shares to herself and sold most of them to a third party for $56,000.
Key facts from the complaint
| Detail | Figure |
|---|---|
| Funds raised by affected funds | $28.67 million |
| Number of investors | At least 85 |
| Amount misappropriated | Approximately $1.28 million |
| Stock shares sold to third party | $56,000 |
| Scheme period | April 2023 to March 2025 |
| Case number | No. 26-civ-12318 (D.N.J.) |
What the SEC is seeking
The complaint charges Polcari with violating Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c). The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and a conduct-based injunction. None of the allegations have been proven. The case sits at the complaint stage, and a court has not yet weighed the evidence.
Red flags investors should recognize
The Polcari case follows a familiar pattern. Investors received wiring instructions that routed money somewhere other than the fund’s official custody account. Wire instructions are the moment when investor money is most exposed. A change in payment instructions deserves scrutiny before funds ever leave your account.
The alleged stock transfer adds a second warning. Fund assets belong to the fund, not to its employees. Any request that touches fund property, such as share re-registrations or unusual transfers, should trigger a call to the fund’s chief compliance officer. It should not trigger a call to the salesperson who suggested it.
What investors should do
Investors who wired money in response to instructions from a fund employee should gather their bank records, subscription agreements, and correspondence now. The SEC complaint may eventually support distribution claims through a court-supervised process. Civil recovery claims can also move on a separate track, and eligibility windows matter.
Investors who believe they suffered losses related to this matter may wish to consult a qualified securities attorney to review their options.
How to recover your losses
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
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Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
This article is for informational purposes only and does not constitute legal advice.
