SEC Files Complaint Against Gabriel Edelman

Gabriel Edelman (CRD #: 5778763), a broker formerly registered with Spartan Capital Securities, is involved in a pending SEC complaint, according to his BrokerCheck record, accessed on October 30, 2022. Read on to learn more about his conduct as a broker.

SEC Complaint

On September 15, 2022, the Securities and Exchange Commission filed a complaint against Gabriel Edelman, Creative Advancement LLC, and Edelman Blockchain Advisors LLC. The SEC alleges that Gabriel Edelman and his two entities fraudulently offered and sold securities using false and misleading statements to at least four investors from February 17, 2017, through May 2021. He allegedly raised a total of approximately $4.39 million from investors and operated his two entities as a Ponzi scheme. 

Gabriel Edelman and his firms allegedly falsely told investors that their funds would be invested in digital assets that they could obtain at a discount. The SEC alleges that they did not intend to fulfill these promises and that they only invested a small portion of investor funds in digital assets.

Rather, the complaint alleges that the defendants used a “significant portion” of investors’ funds for Gabriel Edelman’s personal benefit (including paying credit card bills and paying his family members) and to make early repayments to investors in order to encourage increasingly large investments with Gabriel Edelman’s firms. The SEC alleges that Gabriel Edelman did not disclose that investors’ funds would be used for these purposes.

The SEC alleges that Gabriel Edelman violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

This complaint is currently pending.

Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits fraudulent schemes and devices in the course of business relating to the purchase and sale of securities. In particular, it prohibits the omission of facts and the use of false or misleading statements.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of manipulative, deceptive, and otherwise fraudulent practices in the securities business. Within this section, Rule 10b-5 also bans fraudulent schemes, untrue statements, and misleading omissions of fact.

Bankruptcy

On March 6, 2022, Gabriel Edelman filed for bankruptcy.

Investor Dispute

On September 13, 2021, Gabriel Edelman was named in a dispute involving allegations of negligence, breach of regulatory requirements, and unsuitable investments. This dispute was settled for $90,000.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile describes characteristics including a client’s age, risk tolerance, and investment goals.

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

What is broker negligence?

Many types of broker misconduct may qualify as negligence, ranging from omitting or misrepresenting material facts to unauthorized trading. Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Gabriel Edelman has passed the following exams:

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

He previously worked for Spartan Capital Securities (CRD#:146251).

Kurta Law Can Help

If you worked with Gabriel Edelman 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 and 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.