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fraud

🎭SEC Unmasks a $4M Fraudster

Acclara AI•

The SEC has charged Alan Burak, the founder of Never Alone Capital, with orchestrating a $4 million fraudulent scheme. Burak allegedly misled investors and pocketed their money for personal luxury expenses.

Key Points

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    • 💸 The Scheme: Alan Burak raised $4 million through false promises and fake investment strategies.
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    • 📅 Timeframe: The fraudulent activities took place between 2018 and 2023.
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    • 👫 Victims: At least 17 investors, many from the Latino community, were duped.
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    • 🕵️ SEC's Role: The SEC filed charges seeking permanent injunctions and penalties.
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    • ⚖️ Criminal Charges: The New York County District Attorney’s Office also filed criminal charges.

🎬 The Unveiling

Alan Burak, the man behind Never Alone Capital LLC, painted himself as a wealthy hedge fund owner with a sophisticated investment strategy. He convinced investors, many from the Latino community, to trust him with their money, promising it would be put to work on Wall Street with guaranteed returns. However, this was far from the truth.

🕵️ The Investigation

Between 2018 and 2023, Burak allegedly raised about $4 million from at least 17 investors. Instead of investing the funds, he misappropriated the bulk of it for personal luxuries like high-end skincare and adult-only subscriptions. To keep the facade, he sent out fake account statements showing positive returns while the investors' money was actually disappearing.

🎙️ The Confession

In a shocking audio recording from July 2022, Burak admitted to his fraudulent activities, stating that he was fake, had no real business, and was stealing money from people. This confession was a turning point, leading to the SEC's formal charges.

👩‍⚖️ Legal Actions

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Burak with violating federal securities laws. They seek permanent injunctions, disgorgement of ill-gotten gains, and civil penalties. Meanwhile, the New York County District Attorney’s Office has also filed criminal charges against him.