A recent investor complaint against Henderson, Nevada financial advisors Anthony Napolitano (CRD# 4921500) and Jammie Avila (CRD# 3100097) alleges that...Read More
Gabriel Edelman: Ex-Spartan Advisor Named in SEC Crypto Charges
Pending charges against former New York City advisor Gabriel Edelman (CRD# 5778763) allege that he engaged in a fraudulent scheme involving the sale of digital assets. Financial Industry Regulatory Authority records show that he was most recently registered as a broker with Spartan Capital Securities, though he is not currently affiliated with any FINRA member firm.
SEC Alleges Fraudulent Crypto Scheme
According to a press release issued in September 2022, the Securities and Exchange Commission filed charges against Mr. Edelman and two of his affiliated companies, Creative Advancement LLC and Edelman Blockchain Advisors LLC, in connection with allegations he fraudulently raised and misappropriated investor funds. The SEC alleges specifically that through the affiliated entities, he “fraudulently offered and sold securities using false and misleading statements to four investors, raising a total of approximately $4.3 million.” While he allegedly represented to investors that “their funds would be invested in digital assets,” this did not end up being the case: he allegedly “only invested a small portion of investor funds in digital assets, while using a significant amount of investor funds for personal expenses.” The SEC alleges further that he repaid some investors “in a Ponzi-like fashion in order to encourage further and larger investments.”
The pending charges against Mr. Edelman allege violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking “permanent injunctions, disgorgement with prejudgment interest, and civil penalties” from Mr. Edelman and his companies.
Investor Complaint Settled for $90,000
Mr. Edelman’s FINRA-maintained BrokerCheck report discloses one investor complaint against him. Filed in September 2021, it alleges that as a representative of Spartan Capital Securities, he recommended unsuitable private placement investments, breached regulatory requirements, and acted negligently. In July 2022 the complaint reached a settlement of $90,000.
FINRA: Edelman Last Based in New York City
According to the Financial Industry Regulatory Authority, Gabriel Edelman holds eight years of securities industry experience. He was registered with Spartan Capital Securities in New York, New York from 2010 until 2019 and is not currently a representative of any FINRA member firm. His credentials include the passage of three securities industry qualifying exams, including the Series 7 and the Series 63. (Information current as of December 7, 2022.)
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