The indictment, unsealed in a Manhattan federal court, accuses Komissarov of altering financial records between November 2020 and May 2022
The FBI has brought charges against Vadim Komissarov, who used to run Trident Acquisitions Corp. He is facing accusations of securities fraud, obstruction of justice, and lying under oath. FBI officials say Komissarov cooked up a plan to trick investors by pumping up revenue numbers and hiding financial problems. His goal was to push through a merger between Trident and AutoLotto, which later became Lottery.com.
Komissarov Allegedly Orchestrated Fake Revenue Deals to Secure Merger Approval
The unsealed indictment in a Manhattan federal court charges Komissarov with tampering with financial records from November 2020 to May 2022. He is accused of making up revenue numbers to deceive shareholders and get the green light for the merger. What is more, he profited from this plan selling almost 300,000 Lottery.com shares for over $600,000 before the company’s real financial state came to light.
Prosecutors claim Komissarov and his partners set up fake deals to make AutoLotto’s revenue growth look impressive. A key part of their plan involved a $9 million back-and-forth transaction. They sent money to a company, which then sent it back creating the illusion of real business. They then included these made-up numbers in public reports to the US Securities and Exchange Commission (SEC).
When Lottery.com revealed differences in its reported revenue and available cash, regulatory bodies started an investigation. As federal scrutiny grew, Komissarov tried to hide his tracks by telling coworkers to match their stories and keep quiet about damaging details. During a recorded call with former Lottery.com leaders, he cautioned that if someone exposed his involvement, he would face serious legal problems.
Komissarov’s Fraud Scheme and SEC Probe Obstruction Could Carry 40-Year Prison Sentence
Besides financial fraud, Komissarov faces accusations of blocking justice by meddling with the SEC’s investigation. Prosecutors say he gave misleading testimony under oath saying he had no part in the fraudulent transactions. Furthermore, he used encrypted messaging to talk about the investigation with former coworkers planning ways to avoid getting caught.
Officials stress that the charges come with heavy penalties. A conviction could put Komissarov behind bars for many years, as both securities fraud and obstruction of justice charges can lead to prison terms of up to 20 years each. The Securities and Commodities Fraud Task Force is handling the case, with federal prosecutors and the FBI spearheading the probe.
The indictment of Komissarov piles onto Lottery.com’s mounting legal woes. The company has risked getting kicked off Nasdaq because of governance problems, after key board members stepped down. On top of that, Lottery.com faces a class action lawsuit in Texas where plaintiffs accuse it of taking part in a long-running scam involving lottery ticket sales.
Although the company has cut ties with its former leaders and brought in a new executive team at the end of 2022, ongoing legal issues from its past operations continue to worry both investors and regulators.
