SEC v. Alan Burak — U.S. Securities and Exchange Commission Litigation Release No. 26256, dated December 18, 2025.
The SEC charged Alan Burak, founder of Never Alone Capital, with defrauding at least 17 investors out of approximately $4 million. Burak allegedly promised investors high returns through a complex strategy but instead used most of the money for personal expenses, including luxury goods and adult entertainment. He also sent fabricated account statements showing false profits while investors were actually losing money.
In Plain English
Imagine someone promising to invest your money in a special fund for big profits. They tell you they're a wealthy investor and have a secret plan. You give them money, and they send you fake reports showing your money growing. But instead of investing it, they spend it on themselves, like buying fancy things or paying for online services. When you ask for your money back, they make excuses or stop talking to you, and you realize your money is gone.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Establish a Fake Fund Between 2018 and 2023, Alan Burak founded and operated Never Alone Capital LLC, presenting it as a legitimate investment fund.
- Pose as a Wealthy Investor Burak falsely represented himself as a wealthy hedge fund owner to potential investors, aiming to build credibility and trust.
- Promise High Returns He told investors their money would be invested in 'Wall Street' using a complex strategy, and in some cases, guaranteed returns, to entice them to invest.
- Target Specific Community Burak specifically recruited investors, including several from the Latino community, through a company that offers financial education programs in Spanish.
- Raise Funds Over approximately five years, Burak successfully raised about $4 million from at least 17 investors who wired funds to Never Alone's bank account.
- Fabricate Account Statements After receiving investor funds, Burak sent fabricated monthly 'Account and Activity Statements' that falsely showed consistently positive returns on investments in 'stocks' and 'other'.
- Misappropriate Funds Instead of investing the money as promised, Burak misappropriated the bulk of the investor deposits for personal expenses, including credit card charges for luxury skincare and payments to an adult-only subscription service.
- Admit to Fraud In a July 2022 audio recording, Burak admitted he was 'failing every day' because he was fake, 'did not have a real business,' and was 'stealing money from people,' acknowledging he was losing money in trading.
- Continue the Scheme Despite his recorded confession, Burak continued his fraudulent scheme through the spring of 2023, deceiving investors with false account statements.
- Evade Repayments When investors attempted to withdraw funds based on their false account statements, Burak made excuses and delayed repayments for months before eventually stopping communication altogether.
The Enforcement Action
The SEC charged Alan Burak with fraud in the U.S. District Court for the Southern District of New York, alleging violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil money penalties. The New York County District Attorney’s Office filed parallel criminal charges against Burak.
Named in this action: Alan Burak.