Former Lottery.com Executive Arrested by FBI for Securities Fraud

Posted on: February 26, 2025, 09:09h. 

Last updated on: February 26, 2025, 09:54h.

Philip Conneller @casinoorgphilc Read More

Expertise: Gaming Business, Regulation, Tribal Gaming.

• Lottery.com’s former CEO is charged with a variety of financial crimes, including inflating the company’s revenue to mislead investors
• Vadim Komissarov is also accused of hampering the SEC’s investigation into his alleged crimes
• He faces up to 20 years in prison if convicted

Former Lottery.com executive Vadim Komissarov was arrested by federal agents last week and charged with artificially inflating revenue to hoodwink investors.

The 53-year-old New York resident was CEO of Trident Acquisitions Corp (TDAC), a blank-check company that merged with Lottery.com in 2021 to take the ticket sales platform public.

According to the feds, Komissarov manipulated financials to secure the merger and later lied about the health of the business. He also engineered a fake $9 million transaction using an alias, “Vlad,” prosecutors claim.

‘Facade of Success’

In mid-2022, Komissarov sold almost 300K Lottery.com shares for more than $600K just months before the company disclosed to investors that it had identified accounting irregularities, per the indictment.

“Vadim Komissarov allegedly tried to secure a winning ticket by developing an elaborate scheme comprised of inflated profits, falsified transactions, and perjurious statements to sell company shares,” said FBI Assistant Director in Charge James E. Dennehy in a statement.

Komissarov allegedly abused his authority as the company’s CEO to conjure a facade of success and interfere with an investigation into his suspected misconduct,” Dennehy added.

The reality was that Lottery.com struggled after going public and has faced SEC investigations, investor lawsuits, and internal management turmoil.

In a July 15, 2022 filing to the SEC, Lottery.com admitted it had overstated its available unrestricted cash balance by approximately $30 million, adding that it improperly recognized revenue of the same amount in the prior fiscal year.

Syncing Clocks

After receiving a subpoena from the SEC for documents and testimony in connection with its investigation, Komissarov called two Lottery.com executives so he could “sync” his “clock” with them.

Guys, you do understand, you say that I was involved with this [sham $9 million] transaction … if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water,” Komissarov said, according to the indictment. “So, if you come out and say that I was involved, then I am in deep shit.”

Komissarov also attempted to obstruct the SEC’s investigation. On Nov. 20, 2024, he provided sworn testimony to the SEC, giving false and misleading answers about his involvement with the transaction.

He has been charged with one count of conspiracy to commit securities fraud, to make false and misleading statements in proxy statements, and to make false filings with the SEC; one count of securities fraud; five counts of making false and misleading statements in proxy statements; one count of obstruction of justice; and one count of perjury.

He faces up to 20 years in prison if convicted.