Wires to Accounts She Controlled: SEC Says Former Venture Capital Employee Took $1.28 Million From Fund Investors

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

Investors who wanted into a venture capital fund's offering were told where to wire their money. According to the Securities and Exchange Commission, the bank accounts belonged to the employee giving the instructions.

On Sept. 18, 2026, the SEC charged Ellen Polcari, a former employee of two venture capital firms under common ownership, in the U.S. District Court for the District of New Jersey [1]. The case is SEC v. Ellen Polcari, No. 26-civ-12318. The firms each advised several private funds; the SEC release does not name them, and neither do we.

Important: These are allegations. Polcari has not been found liable, and the release reports no settlement. We found no public response from her or a lawyer for her.

What the SEC alleges

According to the complaint, from at least April 2023 until March 2025, certain of the funds raised about $28.67 million from at least 85 investors, and Polcari misappropriated about $1.28 million of that money [1]. The SEC alleges that she:

1. Talked with prospective investors about joining the funds' securities offerings;
2. Directed interested investors to wire their money to bank accounts she controlled; and
3. Began taking portions of those investments upon receipt or shortly afterward.

The complaint further alleges that Polcari fraudulently transferred to herself stock shares that belonged to one of the funds and then sold most of those shares to a third-party buyer for $56,000 [1].

The charges

The SEC charges Polcari with violating Sections 17(a)(1) and (3) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c), the "scheme liability" antifraud provisions. It seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties and a conduct-based injunction [1]. The release does not mention a criminal case.

Why wiring instructions matter

This case is a reminder that the most important number in any investment may be the account number. Even when the fund and the firm are legitimate, money sent to the wrong account can disappear. Business email compromise schemes use the same weak point from the outside, with criminals spoofing a real firm's emails to send new wire instructions. Whether the risk comes from an insider or an impostor, the defense is the same: confirm payment instructions independently before sending money.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags when wiring money to a fund

• Wire instructions that point to an account not in the fund's own name.
• Last-minute changes to payment details, especially by email.
• One person who controls the pitch, the paperwork and the payment instructions.
• No confirmation from the fund administrator after you invest.

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
Ellen Polcari	U.S. District Court, D.N.J. (No. 26-civ-12318)	SEC civil complaint filed Sept. 18, 2026; allegations only; no judgment or settlement reported	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26642, "SEC Charges Former Employee of Venture Capital Firms for Misappropriation of Investor Money," Sept. 18, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26642
2. SEC complaint. https://www.sec.gov/files/litigation/complaints/2026/comp26642.pdf

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, judgment, settlement or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.