SEC accuses Brooklyn adviser of running $4.1M Ponzi-like scheme

A New York adviser is facing SEC fraud charges after allegedly running a $4.1 million Ponzi-like scheme that targeted members of the Russian-American Jewish community. 

Federal regulators on Thursday filed a civil complaint against Marat Likhtenstein, founder of Brooklyn-based Likhtenstein Financial Planning, accusing him of raising millions from at least 15 clients through self-issued promissory notes over a seven-year period. The SEC alleges that, from at least April 2017 to June 2024, Likhtenstein promised double-digit returns and used his heavily mortgaged home as collateral, while misappropriating client funds for personal expenses and making Ponzi-like payments to earlier investors. 

According to the SEC’s complaint, Likhtenstein, 65, marketed himself as a seasoned adviser, holding FINRA Series 7, 63, and 66 licenses and the right to use the Certified Financial Planner designation. Many of his clients, the SEC claims, were elderly, had limited English capabilities, and relied on his reputation within the community. The complaint alleges that Likhtenstein told clients their money would be invested in highly lucrative business opportunities through his “side business,” but instead diverted approximately $3.2 million for personal use and used about $940,000 to pay other investors. 

The SEC says Likhtenstein repeatedly listed his Brooklyn home, purportedly worth $1.4 million, as collateral for the notes, but failed to disclose that the property was heavily mortgaged and had been pledged to multiple clients, rendering it essentially worthless as security. The regulator alleges that none of the investors have recouped their principal or received the promised returns. 

The complaint details how the scheme began to unravel in the summer of 2024, when Likhtenstein allegedly admitted to at least one client that he had been running a “pyramid” scheme for over ten years and compared himself to Bernard Madoff. According to the SEC, Likhtenstein told the client he would still be running the scheme if someone had not “ratted” him out to his broker-dealer. 

Likhtenstein’s alleged misconduct occurred while he was associated with a registered broker-dealer and investment advisory firm. The SEC notes that he received annual compliance training and acknowledged, in writing, that he was prohibited from borrowing from or issuing promissory notes to clients—rules he is accused of disregarding. 

In August 2024, Likhtenstein and his wife filed a joint Chapter 7 bankruptcy petition. In March 2025, he was indicted by a Kings County grand jury on 22 felony counts, including grand larceny and scheme to defraud, for conduct related to the SEC’s allegations. Both the bankruptcy and criminal proceedings are currently pending. 

The SEC is seeking a permanent injunction barring Likhtenstein from violating federal securities laws or acting as or being associated with a broker, dealer, or investment adviser, as well as disgorgement of ill-gotten gains, civil penalties, and other relief. The agency has demanded a jury trial. 

The case remains in its early stages, and the allegations are those of the SEC’s complaint. But the filing offers a cautionary tale for wealth management professionals and compliance officers: even experienced advisers with industry credentials can exploit client trust and sidestep firm controls. The SEC’s action underscores the need for rigorous oversight and vigilance when it comes to off-book investment offerings and adviser conduct.