Despite raising $68 million, Luca Funds, Luca Operation and Luca Managers had combined balances of less than $12,000 as recently as March 2015.
The SEC seeks to bar Luca and the defendants from the securities industry and bar the individual defendants from serving as officers of public companies. The agency also seeks the payment of disgorgement fees and civil penalties.
Pollace has agreed to pay a $25,500 penalty to settle charges that he played a small role in the alleged fraud.
In a related action, Hiroshi Fujigami and his company Wisteria Global settled charges that they acted as unlicensed brokers to illegally sell Luca securities, agreeing to pay disgorgement fees and to be barred from the securities industry.