Caner Otar Involved in SEC Complaint Alleging False Statements

Caner Otar (CRD #: 5628513), also known as John Otar, a broker formerly registered with Worden Capital Management, has been named in an SEC complaint, according to his BrokerCheck record, accessed on April 12, 2025. If you have questions about his alleged conduct as a broker, read on.

SEC Civil Complaint

On January 31, 2025, the Securities and Exchange Commission filed a civil complaint against Caner Otar, John Cangialosi, Jr., Peter Girgis, Gene Sarabella, Enrico Carini, Chester Scotland, Franz Lambert II, Max Infinity Management LLC (d/b/a Max Infinity Fund), Max Infinity Venture Partners, Inc., Elder Fund Management LLC, JJRP United Corp, and Grand Level Consulting Inc.

The SEC alleged that the defendants conducted a fraudulent scheme that raised over $70 million from more than 550 investors across the country. This scheme allegedly involved investment fund interests offered by Max Infinity Fund and Elder Fund (the Funds), which purported to represent shares of stock in pre-Initial Public Offering (IPO) companies.

For his part, Caner Otar allegedly acted as an unregistered sales agent to make unsolicited pitches of these pre-IPO stocks to investors using scripts that contained false and misleading statements. Many of these investors were allegedly seniors.

Alleged False and Misleading Statements

Caner Otar allegedly made false statements to investors, including that the Funds had a history of success in pre-IPO stock, these were low-risk investments, investors’ funds would be held in escrow until the IPO, and that he personally held shares of the Funds.

The SEC alleged that none of these claims were true, and that neither the Funds nor any of the defendants were registered with the SEC, and that the Funds were managed by people with no experience managing investment funds.

Further, Caner Otar and other defendants allegedly sold interests at mark-ups of 45-100% of the price paid by Max Infinity Management, Max Infinity Venture Partners, and Elder Fund Management. Investors were allegedly not informed of these charges, which were allegedly used to pay commissions to sales agents.

At the time of complaint filing, the SEC alleged, only one pre-IPO company had gone public, and this resulted in significant financial losses for investors in the funds. 

This complaint is currently pending.

Criminal Charges

On July 10, 2015, a felony charge was entered against Caner Otar. According to his detailed BrokerCheck record, this charge was later amended to a misdemeanor and conditionally discharged with a $1,000 fine and other conditions.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Florida Regulatory Action

On February 16, 2015, the Florida Office of Financial Regulation denied Caner Otar’s application for registration, alleging that he made a material false statement on his application.

Background Information

Caner Otar has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• Worden Capital Management (CRD#:148366)
• PHX Financial (CRD#:144403)
• Garden State Securities (CRD#:10083)
• Global Arena Capital Corporation (CRD#:16871)
• Alexander Capital, L.P. (CRD#:40077)
• Legend Securities (CRD#:44952)

Kurta Law Can Help

If you worked with Caner Otar and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.