SEC Obtains Monetary Judgment Against Unregistered Broker Tied to GPB Capital

The United States District Court for the Northern District of Texas granted the U.S. Securities and Exchange Commission’s request for monetary remedies against Daniel E. Levin, a Dallas-Fort Worth resident.

According to the SEC’s complaint filed on May 9, 2023, Levin solicited investors to purchase approximately $2.6 million worth of units in a fund he controlled, the CRP Fund, which in turn owned units in funds run by GPB Capital, the now bankrupt private equity firm charged with running a “Ponzi-like scheme” by the SEC.

Levin allegedly violated the requirements of the broker-dealer registration provisions by soliciting those funds from at least 27 investors from 2017 through 2018. The complaint further alleged that Levin was required to register with the SEC and maintain a brokerage license, which he failed to do.

The complaint, filed in the Northern District of Texas, charged Levin with violating Section 15(a) of the Securities Exchange Act of 1934. Levin, without admitting or denying the allegations, consented to a bifurcated settlement, agreeing to be permanently enjoined from violations of the charged provision. The Court entered the bifurcated judgment on July 26, 2023.

The SEC made a motion for $320,000 in disgorgement and prejudgment interest thereon and civil penalties of just over $115,000, which the court granted on April 30, 2024.

Click here to visit The DI Wire directory page.