A VC hired his kids’ nanny to run the back office. The SEC says she took $1.3 million

Amanda Gerut reports on a case where a venture capital firm hired the nanny of the firm's two young children to manage their back office operations. According to the Securities and Exchange Commission (SEC), this individual, Ellen Polcari, allegedly misappropriated around $1.28 million, which was used for various personal expenses such as online gambling, shopping, and restaurant meals.

The SEC filed a complaint in federal court in New Jersey on September 18, stating that between April 2023 and March 2025, the venture firms raised approximately $28.7 million from at least 85 high-net-worth investors and family offices. The SEC alleges that Polcari, who gained significant control over the fund administration, was the sole signatory on the new fund's bank account and listed herself as a "Partner with Control of the Entity" and an 80% owner, despite the actual owners being unaware of her position.

The SEC claims that Polcari gained unauthorized access to the funds almost immediately after receiving them, moving money to her own accounts and using it for personal expenses. The allegations escalated when Polcari allegedly misappropriated nearly $1 million from four other funds to cover shortfalls, and forged the fund owner's digital signature to transfer portfolio company shares to her own business.

The VC owner and Polcari learned of the SEC's investigation in late February 2025, and Polcari was subsequently fired and admitted to some of the allegations.