SEC Obtains Judgment Against Attorney Charged with Multi-Million Dollar Offering Fraud
The United States District Court for the Eastern District of New York has entered a final judgment against Shimon Rosenfeld
The United States District Court for the Eastern District of New York has entered a final judgment against Shimon Rosenfeld, a Brooklyn-based attorney who was charged by the SEC with engaging in an illegal offering fraud.
In a parallel criminal action, Rosenfeld was sentenced to six months in prison followed by three years of supervised release. He was also ordered to make restitution of $6.8 million and $4 million in forfeiture.
The SEC alleged that between May 2014 and March 2018, Rosenfeld solicited investors by promising that he would pool their funds to purchase and then resell real estate for a profit, which he would then split with the investors. The SEC claims that he raised $7 million from investors.
The SEC alleged that, contrary to what he told investors, Rosenfeld never used the investor funds to purchase real estate. Instead, he reportedly misappropriated their money to trades securities in his personal brokerage account.
According to the SEC, while Rosenfeld returned approximately $1 million to investors, his securities trading resulted in the loss of the remaining $6 million.
In the SEC’s civil action, Rosenfeld was enjoined from future violations of was ordered to pay $6 million in disgorgement, plus $1.1 million in prejudgment interest, which is deemed satisfied by the payment of restitution and forfeiture in the parallel criminal complaint.
