Were you the victim of former Spartan Capital Securities, LLC broker Gabriel Edelman (CRD# 5778763), who is accused of unsuitable investment recommendations? He was registered with Spartan Capital Securities, LLC in New York, New York, from 2010 to 2019.
In September 2022, the Securities and Exchange Commission (SEC) opened an investigation against Gabriel Edelman and Edelman Blockchain Advisors LLC, alleging that between February 2017 and May 2021, he and his two entities, Creative and Edelman Blockchain, “fraudulently offered and sold securities, using false and misleading statements, to at least four investors, raising from them a total of approximately $4,390,000. Defendants falsely told investors that their funds would be invested in digital assets that, Defendants claimed, they could obtain at a discount. However, Defendants did not intend to carry through on their promises and, in fact, invested only a small portion of investor funds in digital assets. Defendants used a significant portion of the remaining investor funds for Edelman’s own personal benefit-to pay Defendants’ credit card bills and to pay significant amounts to Edelman’s family members-and, in Ponzi-like fashion, to make early repayments to investors to encourage their ever-larger investments with Defendants. Edelman did not disclose to the investors that Defendants would use, or were using, their funds for any such personal expenses or to repay other investors.”
Gabriel Edelman Customer Complaints
He has been the subject of two customer complaints between 2021 and 2022, according to his CRD report:
November 2022. “Time Frame: August 2015 through July 2022. Suitability, Overconcentration, Failure to Supervise, Breach of Fiduciary Duty, Breach of Contract, Negligence, Misrepresentation, and Omission of Facts, Lost Opportunity.” The customer is seeking $247,262 in damages, and the case is currently pending. The complaint was related to private placement investment losses, and it took place while he was registered with Spartan Capital Securities, LLC.
September 2021. “Unsuitable investments, Breach of Regulatory requirements, Negligence.” The case was settled for $90,000. The complaint was related to private placement investment losses, and it took place while he was registered with Spartan Capital Securities, LLC.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Spartan Capital Securities, LLC may be liable for investment or other losses suffered by Gabriel Edelman’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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