Solomon Lichtenstein pleaded guilty on Mar. 11 before U.S. Magistrate Judge Victoria Reznik to securities fraud for defrauding investors in two investment vehicles he managed, according to an announcement by United States Attorney for the Southern District of New York, Jay Clayton.
The case is significant because it involves millions of dollars solicited from friends, relatives, and community members under false pretenses. Prosecutors say Lichtenstein misrepresented his investment qualifications and strategy, leading victims to believe they would receive large returns.
Clayton said, “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. 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 court documents and statements made in court, Lichtenstein operated the scheme from July 2022 through August 2024. He raised more than $3 million but invested less than $600,000 of those funds while incurring significant losses. Approximately $1 million was used for personal expenses such as mortgage payments, travel, dining, and cash withdrawals. After accounting for some returned funds, investor losses exceeded $1.5 million.
Lichtenstein faces a maximum sentence of five years in prison for one count of securities fraud. The actual sentence will be determined by the judge at a hearing scheduled for July 8.
Clayton praised the Federal Bureau of Investigation’s work on the case and thanked the U.S. Securities and Exchange Commission for its assistance; the SEC has filed a separate civil action against Lichtenstein. The prosecution is being handled by Assistant U.S. Attorneys Reyhan Watson, James McMahon, and John Sarlitto from the White Plains Division.
