On April 4, 2017, James Trolice, the president and chief marketing owner of eAgency, a California-based company that developed mobile security products, pled guilty to wire fraud and transacting in criminal proceeds in connection with a scheme to defraud investors out of more than $5 million.  Trolice was also the president and owner of Trolice Consulting Services LLC.  Along with Lee Vaccaro, Trolice sold investors interests in Trolice Consulting Services and companies that Vaccaro controlled, falsely representing to the investors that those companies held eAgency warrants.  Warrants are derivative securities, which give the holder the right to purchase common stock within a particular time frame at a certain price.  Trolice made misrepresentations to investors about the existence, number, validity and term of warrants in eAgency that the investment companies purportedly owned, and the amount of money Trolice had personally invested in and raised for eAgency.  As of January 2011, the dollar amount of interests that Trolice and Vaccaro sold in the investment companies began to surpass the amount of valid warrants that were held by the investment companies, but neither Trolice nor Vaccaro informed investors of the risk that their investments would be diluted by the sale of additional interests in the companies.  Vaccaro was previously sentenced to six years and six months in prison in connection with this scheme on February 14, 2017.  United States v. Trolice (D.N.J.) DOJ press release