SEC Charges Former Venture Firm Employee Ellen Polcari With Misappropriating About $1.28 Million of Investor Money
On September 18, 2026, the U.S. Securities and Exchange Commission charged Ellen Polcari in the U.S. District Court for the District of New Jersey (No. 26-civ-12318), alleging that the former employee of two venture capital firms under common ownership misappropriated money invested in private funds the firms advised. The SEC's charges are civil allegations and the case is pending.
According to the SEC's complaint, from at least April 2023 until March 2025, the funds collectively raised approximately $28.67 million from at least 85 investors, and Polcari misappropriated approximately $1.28 million of that money. The complaint alleges she communicated with prospective investors about the funds' offerings, directed them to wire their investments to bank accounts she controlled, and began misappropriating portions of the money upon receipt or shortly thereafter. She also allegedly transferred stock shares belonging to one of the funds to herself and sold most of them to a third-party purchaser for $56,000.
The SEC 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) thereunder, and seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, and a conduct-based injunction. The investigation was conducted by the SEC's New York Regional Office.
Source: U.S. Securities and Exchange Commission
Published by GSM · USA (original Chinese edition)
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