Written by The White Law Group• June 3, 2024• 7:50 pm• Broker Investigations, FINRA SEC Sanctions

Gabriel Edelman, ex-Spartan Capital Broker, Barred by SEC

SEC Charges Gabriel Edelman with Crypto Scheme

According to Investment News on Friday, the SEC has reportedly barred Gabriel Edelman, a former broker, for allegedly fraudulently offering and selling securities under the pretense of investing in cryptocurrency assets, but instead purportedly using the funds for personal expenses and to repay other investors.

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From 2017 to 2021, Edelman and his companies, Creative Advancement and Edelman Blockchain Advisors, reportedly raised approximately $4.4 million from at least four investors through allegedly misleading statements. Edelman, who was reportedly registered with Spartan Capital Securities until 2019, purportedly misappropriated most of the funds for personal use, including paying credit card bills and giving money to family members.

FINRA BrokerCheck – Gabriel Edelman

According to this FINRA BrokerCheck report, Gabriel Edelman was affiliated with the following firms during his career, among others:

05/31/2010 – 05/15/2019, SPARTAN CAPITAL SECURITIES, LLC (CRD#:146251), NEW YORK, NY

Edelman reportedly has two customer complaints filed against him, according to his broker profile. Allegations include Suitability, Overconcentration, Failure to Supervise, Breach of Fiduciary Duty, Breach of Contract, Negligence, Misrepresentation, and Omission of Facts, Lost Opportunity. Edelman reportedly filed for bankruptcy in March 2022.

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA. Investors can use the tool to verify if a broker or brokerage firm is registered with FINRA, review their employment history, licensing status, and any regulatory actions or complaints filed against them.

Filing a Complaint against your Brokerage Firm

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Class Action vs. Individual FINRA Arbitration Lawsuit

People often wonder whether a large class action lawsuit is a better litigation option for them than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Free Consultation with a Securities Attorney

If you have suffered investment losses with Gabriel Edelman, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.

With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses.