Investment Banker Takes Plea Deal In $1.5M Investment Scheme Targeting New Yorkers

STONY POINT, NY — A Rockland County man has entered a guilty plea to charges involving the defrauding of investors in a multimillion-dollar scheme.

The U.S. Attorney for the Southern District of New York, Jay Clayton, announced that Solomon Lichtenstein admitted in federal court to securities fraud in connection with a scheme to defraud investors in two investment vehicles he managed and promoted.

The 30-year-old Stony Point resident pleaded guilty to one count of securities fraud, which carries a maximum sentence of five years in prison. Lichtenstein is scheduled to be sentenced on July 8.

"Solomon Lichtenstein solicited and received millions of dollars from friends, relatives, and members of his community on the back of false statements and misrepresentations regarding his investment qualifications and strategy, track record, and returns," Clayton said. "When investment advisers abuse the trust of their clients and use New Yorkers' hard-earned money for their personal benefit, our Office will hold them criminally accountable."

According to the plea agreement, over roughly two years from July 2022 through August 2024, Lichtenstein defrauded dozens of investors in two investment entities he operated, raising over $3 million.

Lichtenstein falsely represented to investors and prospective investors that his unique trading and risk mitigation strategies were generating large returns. In reality, he invested less than $600,000 of the funds he received and incurred significant losses on those funds through losing trades.

Lichtenstein also took around $1 million in investor funds for personal use, including home mortgage payments, travel and dining expenses, and cash withdrawals. Accounting for funds that were returned, investors lost more than $1.5 million through the scheme.

Clayton praised the "outstanding investigative work" of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission, which has filed a separate civil action against Lichtenstein, for its assistance and cooperation in the investigation.

The prosecution is being handled by the Office's White Plains Division.