A former executive of a special purpose acquisition company has been sentenced to prison in the United States after pleading guilty to misleading investors in a high-profile merger involving Lottery.com.
Vadim Komissarov, the former head of Trident Acquisitions Corp., was sentenced to three years in prison by a federal court in New York. The move comes after he pleaded guilty to securities fraud for conduct prosecutors said misrepresented the financial condition of a company being acquired.
The authorities said the misconduct occurred from late 2020 to mid-2022, as Trident was preparing to merge with Lottery.com. The court found Komissarov was key in presenting inflated revenue figures by organizing transactions that had no real commercial substance. One was a $9 million deal that looked legitimate but effectively recycled money to generate fake income.
The false financial statements were used in obtaining shareholder approval for the merger, which was being pressured by a deadline that could have required the return of tens of millions of dollars to investors. The deal was able to move forward by creating the illusion of business activity and ultimately taking Lottery.com public.
Komissarov Ordered to Forfeit $600K After Fraud Case
Komissarov was also found to have attempted to obstruct regulatory scrutiny and to have manipulated financial data. Prosecutors said he tried to coordinate accounts with other executives to hide his involvement, evidence introduced at trial showed. He also made inaccurate statements under oath during an investigation by the US Securities and Exchange Commission (SEC).
The presiding judge said the defendant posed no ongoing threat but said the seriousness of the offence deserved a custodial sentence. The court said Komissarov was in a difficult financial situation and, instead of admitting his guilt, resorted to illegal methods.
The 54-year-old was also told to serve three years of supervision after his release, as well as the prison sentence. He must also give up more than $600,000 in profits from the sale of shares before the company revealed its financial irregularities.
The case is one of several enforcement efforts involving wrongdoing related to the boom in SPAC deals in recent years. Others associated with Lottery.com have also been sued, some of whom are cooperating with prosecutors.
US authorities said they are committed to pursuing corporate executives who mislead investors, and said transparency in public markets remains a priority for regulators and law enforcement agencies.