SEC Charges Hedge Fund Founder with Fraud in $4 Million Scheme
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has charged Alan Burak, founder of Never Alone Capital LLC, with orchestrating a fraudulent investment scheme that raised approximately $4 million from investors. The SEC alleges that Burak misrepresented himself as a wealthy hedge fund owner and falsely claimed that Never Alone Capital operated as an investment fund employing a sophisticated Wall Street strategy—sometimes even guaranteeing returns.
According to the SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, Burak solicited funds from at least 17 investors between 2018 and 2023. Many of these individuals came into contact with Burak through a financial education company that provides programs in Spanish to the Latino community. Rather than investing the funds as promised, Burak allegedly misappropriated most of the money for personal expenses, including luxury skincare products and an adult-only subscription service.
To conceal his fraud, Burak allegedly issued falsified account statements that showed consistent profits, despite investors experiencing losses, according to an SEC.gov press release. By July 2022, he stopped responding to investors and, in an audio recording, admitted that he was running a scam, stating that he was “fake,” had no real business, and was stealing from people.
As reported by SEC.gov, the Commission is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and conduct-based injunctions against Burak.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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