Evan Katz Settles SEC Fraud Charges: Crawford Ventures
Evan Katz (CRD# 5848403), formerly a broker registered with Stonehaven, defrauded prospective investors in the Crawford Ventures Absolute Return Fund, according to a recent sanction. MDF Law is investigating the former New York City-based financial professional for similar conduct. We encourage any former clients with concerns about their investments to contact us for a free consultation.
Read the following post to learn more about Mr. Katz’s disciplinary history. The information below is sourced from a December 3, 2024 examination of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Charges Alleged Crawford Ventures Misrepresentations
On September 27, 2024, the Securities and Exchange Commission announced the settlement of charges against Mr. Katz. According to a release published by the regulator, the charges alleged that he made misrepresentations to prospective Crawford Ventures investors. This fund raised investments exceeding $16 million between 2022 and 2023, per the SEC. As alleged, communications and offering materials represented that the fund “would employ a successful trading strategy previously used by Katz’s partners” for other clients.
The fund also allegedly provided certain investors with audit materials “purportedly issued by an Australian audit and consulting firm.” However, the SEC found, the company “had never performed any audit work” for Mr. Katz’s partners. The purported audit materials it issued, meanwhile, “were fake.” Mr. Katz’s partners allegedly “created a fake email address in order to impersonate the auditor in communications with potential investors.”
Evan Katz Consents to SEC Order, Penalty
As the SEC’s order explains, Mr. Katz’s partners had not told him that these materials were forged. However, the regulator concluded, Mr. Katz failed to take reasonable steps to confirm the legitimacy of their claims. “Katz also failed to take reasonable steps to ensure the accuracy of representations concerning third party accolades of the Fund,” the SEC found.
The SEC concluded that Mr. Katz violated securities law. As such, it ordered him to cease and desist from any further violations. It also ordered him to pay more than $98,000 in disgorgement, and a civil penalty of more than $98,000. Mr. Katz did not admit to or deny the findings, but he did consent to the order.
FINRA: Broker Last Based in NYC
Mr. Katz launched his career as a broker in 2013, when he registered with Alternative Asset Investment Management. Over the following years, he went on to work with BA Securities before joining Stonehaven’s office in New York City. He resigned from Stonehaven in September 2024, after allegedly violating firm policy by failing to disclose the SEC’s investigation. With eight years of experience as a broker, he has completed three industry exams, including the Series 82 and the Series 63.
Call MDF Law for a Free Consultation
Did you lose money you couldn’t afford to lose on investments recommended by Evan Katz? You may have grounds to lodge a FINRA arbitration claim and seek the recovery of lost funds. Having recovered tens of millions of dollars for our clients, MDF Law takes cases on a contingency basis: you only pay a fee if you win. Call 800-767-8040 for a free consultation with our team today.