Thief Pockets $3.2M, Buys Nothing With $4.1M Ponzi Scheme Cash!

SEC v. Marat Likhtenstein — U.S. Securities and Exchange Commission Litigation Release No. 26476, dated February 5, 2026.

The SEC charged Marat Likhtenstein with orchestrating a $4.1 million offering fraud scheme that primarily targeted the Russian-American Jewish community. Likhtenstein allegedly sold promissory notes to clients, promising high interest rates, but instead used the funds for Ponzi-like payments and personal expenses.

In Plain English

Imagine someone promising you a super-fast way to double your money, like a magic money tree. They ask you to give them your savings to plant seeds in this 'magic tree' business. But instead of planting seeds, they take your money to pay off other people who also gave them money, or they just spend it on themselves, like buying fancy cars or going on vacations. That's what happened here, and the person in charge got caught.

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

1. Targeting the Community From at least April 2017 through June 2024, Marat Likhtenstein acted as an investment adviser and targeted the Russian-American Jewish community, including many elderly clients.
2. Selling Promissory Notes Likhtenstein solicited, recommended, and sold self-issued investments in the form of promissory notes through his 'side business'.
3. False Promises of High Returns He falsely told clients that purchasing these notes would yield 'extraordinary interest rates' through investments in 'highly lucrative business opportunities and deals'.
4. Misrepresenting Collateral To make the investments appear safe, Likhtenstein listed his Brooklyn house, valued at $1.4 million, as collateral, despite it being heavily mortgaged and already used for other notes.
5. Misappropriating Funds Instead of investing client funds, Likhtenstein allegedly used the money for other purposes.
6. Ponzi-Like Payments Approximately $940,000 of the raised funds were used to make Ponzi-like payments to other investors, a common tactic to sustain the illusion of profitability.
7. Personal Spending Likhtenstein spent nearly $3.2 million of the investor funds on his personal expenses, indicating a significant diversion of capital.
8. Admission of Scheme In the summer of 2024, Likhtenstein admitted to at least one client that he was running a 'pyramid' scheme and compared himself to Bernie Madoff.
9. Investor Losses To date, none of the clients have recouped their initial investments or received the promised returns, resulting in substantial losses.

The Enforcement Action

On September 26, 2025, the SEC filed charges against Marat Likhtenstein for an offering fraud scheme that raised over $4.1 million from at least 15 clients, primarily targeting the Russian-American Jewish community. Likhtenstein allegedly sold promissory notes, promising high returns, but instead used the funds for Ponzi-like payments and personal expenses. He consented to a bifurcated settlement, agreeing to injunctive relief, with monetary relief to be determined later. The Court entered the consent judgment on February 4, 2026. A parallel criminal action was brought by the Kings County District Attorney's Office on March 12, 2025.

Named in this action: Marat Likhtenstein.

Original SEC litigation release ↗ · Browse all cases