Vadim Komissarov, the previous CEO of Trident Acquisitions Corp. (TDAC), is dealing with critical federal prices, together with securities fraud, obstruction of justice, and perjury. Prosecutors allege he orchestrated a scheme to deceive buyers by reporting false income figures to safe a merger with Lottery.com. The indictment, unsealed within the Southern District of New York, particulars an elaborate plan involving fabricated monetary transactions, deceptive SEC filings, and makes an attempt to hinder investigations.
Authorities state that between November 2020 and Could 2022, Komissarov engaged in fraudulent actions designed to inflate Lottery.com’s income and mislead buyers. TDAC, a particular objective acquisition firm (SPAC), was beneath strain to merge with a goal earlier than its deadline, or it will be pressured to return funds to buyers. Komissarov allegedly manipulated monetary data and executed sham offers to safe the acquisition of AutoLotto, which later turned Lottery.com, in keeping with Bloomberg Legislation.
One of many key allegations facilities round a $9 million roundtrip transaction that Komissarov reportedly engineered beneath the alias “Vlad.” This deal, prosecutors declare, falsely portrayed income development and helped persuade shareholders to approve the merger. Following the completion of the acquisition in late 2021, Lottery.com’s inventory surged, reaching a valuation of over $800 million. Nevertheless, by mid-2022, the corporate confronted monetary turmoil, struggling to fulfill payroll and revealing vital discrepancies in its reported income.
Fabricated Transactions and Obstruction Allegations
The indictment outlines a number of misleading transactions, together with the acquisition of a Mexican gaming firm and a posh $30 million financing deal. Authorities allege that these transactions had been structured to create the phantasm of profitability, boosting investor confidence whereas concealing the corporate’s precise monetary state. In actuality, a good portion—$54.1 million out of $68.5 million—of Lottery.com’s reported 2021 income was allegedly fraudulent.
Komissarov can also be accused of making the most of the deception by promoting practically 300,000 shares of Lottery.com inventory for over $600,000 in early 2022, simply months earlier than the corporate disclosed its monetary irregularities.
When the U.S. Securities and Alternate Fee (SEC) launched an investigation into Lottery.com in mid-2023, Komissarov allegedly tried to hinder it. He reportedly instructed former firm executives to align their tales to attenuate his involvement. Throughout one dialog, he was recorded warning, “Guys, you do perceive, you say that I used to be concerned with this transaction… if Trident and me particularly knew about it, then I’m in deep, deep, deep, deep water… So, if you happen to come out and say that I used to be concerned, then I’m in deep shit.”
Moreover, he allegedly supplied false testimony to the SEC beneath oath in November 2024, denying any involvement within the fraudulent monetary actions.
Legal Prices and Authorized Proceedings
Komissarov has been charged with 9 counts, together with conspiracy to commit securities fraud, securities fraud, making false statements in proxy filings, obstruction of justice, and perjury. Probably the most critical prices—securities fraud, making false statements, and obstruction—every carry a most sentence of 20 years in jail, whereas the conspiracy and perjury prices every have a most sentence of 5 years.
The case, overseen by United States District Decide Alvin Okay. Hellerstein, is being prosecuted by the Southern District of New York’s Securities and Commodities Fraud Activity Drive. The investigation was led by the FBI, with help from the SEC.
FBI Assistant Director James E. Dennehy emphasised the severity of the case, stating, “Vadim Komissarov allegedly tried to safe a successful ticket by creating an elaborate scheme comprised of inflated earnings, falsified transactions, and perjurious statements to promote firm shares.”
Whereas the costs in opposition to Komissarov stay allegations, and he’s presumed harmless till confirmed responsible, the case represents a major crackdown on fraudulent practices inside SPAC mergers. Lottery.com has since changed its board and government management in an effort to distance itself from previous controversies.
