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

Hi, it’s Amanda Gerut, pinch hitting for Allie.

In late 2014, Ellen Polcari was nannying for a VC’s two young children.

A decade later, she had branded herself the firm’s “controller,” and, according to the SEC, the person who allegedly moved about $1.28 million of investor money into her own accounts.

The money went to online gambling, shopping, and restaurant meals, regulators say.

That complaint, filed in federal court in New Jersey on Sept.

18, states that the funds raised about $28.7 million from at least 85 mostly high-net-worth investors and family offices between April 2023 and March 2025.

The venture firms aren’t named; the SEC states that the two firms are based in Montana.

It’s an extreme case if the allegations hold up.

But the mechanics aren’t exotic.

A small firm, a founder focused on deals, and one trusted person running the back end.

For anyone who writes checks and works with emerging managers, it’s a question worth verifying every time: Who can move money, and who is checking to make sure it’s going to the right place? Here’s what happened, according to the SEC.

A year into her nannying gig, the fund manager brought Polcari into the firm as an “executive assistant.” Over the next decade, her role grew to cover everything involving the bowels of fund administration.

She sent offering documents and wire instructions, tracked down subscription agreements, and wired capital to portfolio companies.

By April 2023, she allegedly became the sole signatory on a new fund’s bank account and described herself on the application as a “Partner with Control of the Entity” and an 80% owner of the fund, unbeknownst to the owner, the SEC says.