Marat Likhtenstein Arrested by Brooklyn DA’s Office: What it Means for Victims?

MDF Law is interested in speaking to former clients of Marat Likhtenstein, a former financial advisor from Brooklyn, New York who was arrested for stealing from clients.  If you or someone you know invested with him, call MDF Law at 800-767-8040 for a free and confidential consultation.

Federal Fraud Complaint Alleging Ponzi-Like Scheme Targeting Jewish-Russian American Community

The U.S. Securities and Exchange Commission recently filed a civil enforcement[1] action alleging that Marat Likhtenstein operated a long-running fraudulent investment scheme that raised more than $4.1 million from investors, mostly Russian-Americans from Brooklyn, New York. According to the SEC’s complaint, Marat Likhtenstein allegedly sold self-issued promissory notes to clients, many of whom were elderly and financially unsophisticated,  while promising guaranteed, high returns. The SEC further alleges that investors were told the notes were secured by real estate, when in reality the property was heavily encumbered and provided little to no meaningful collateral protection.

The complaint describes a classic Ponzi-style structure[2], where funds from new investors were allegedly used to make payments to earlier investors rather than being invested as represented. The SEC alleges material misrepresentations regarding the use of proceeds, the security of the investment, and the risks involved. The agency is seeking permanent injunctions, disgorgement of alleged ill-gotten gains, prejudgment interest, and civil penalties.

SEC Ponzi Scheme Charges against Likhtenstein Financial

Indictment in Brooklyn, New York for Investment Scheme

A licensed Brooklyn financial advisor, Marat Likhtenstein, has been indicted [4]in Kings County for allegedly stealing nearly $1.24 million from 10 clients through a Ponzi-style investment scheme. Prosecutors say Marat Likhtenstein issued promissory notes promising 20% returns on supposed business opportunities but failed to disclose any real details about those ventures. Instead of investing client funds as represented, he allegedly used the money for personal expenses and to make partial payments to earlier investors — classic indicia of a Ponzi scheme[5].  The indictment includes multiple counts of grand larceny, scheme to defraud, and violations of New York’s General Business Law.

Who Can Victims Sue?

At the time of the alleged misconduct, the advisor was associated with Osaic Wealth, Inc. (formerly known as Royal Alliance Associates, Inc.), a FINRA-registered broker-dealer. Broker-dealers are not passive bystanders. Under FINRA rules and federal securities laws, they have an affirmative legal duty to supervise their registered representatives and to maintain compliance systems reasonably designed to detect and prevent misconduct. These duties include monitoring outside business activities, reviewing private securities transactions, examining promissory note offerings, and investigating red flags that could signal fraud or unsuitable recommendations.

If those supervisory obligations were not fulfilled, the brokerage firm itself can be held liable for investor losses. FINRA arbitration allows customers to pursue claims against the supervising broker-dealer for failure to supervise, negligence, breach of fiduciary duty, and failure to conduct reasonable due diligence. In many cases, the brokerage firm, not just the individual advisor,  is the party with the financial resources and insurance coverage necessary to provide meaningful recovery.

MDF Law is actively evaluating whether supervisory failures occurred and whether investors have viable claims against responsible brokerage firms. If you invested through a registered representative and sustained losses, your legal options may extend beyond the individual who has been arrested.

Don’t Assume the Case Ends with Marat Likhtenstein‘s Arrest

An arrest does not restore your investment losses. If you were harmed, you need to speak with a FINRA arbitration attorney who understands broker-dealer liability and supervisory failures. MDF Law is actively reviewing claims and pursuing recovery for investors through FINRA arbitration.