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Written by 2:33 pm Blog, Securities Fraud Articles

NY Broker Indicted on Securities Fraud and Grand Larceny

According to the Daily News, New York broker Ronen Zakai was indicted on securities fraud and grand larceny for stealing approximately $705,000 from five clients. According to the report, investors allegedly thought they were investing in the initial public offering (IPO) of Facebook, however their money was never invested.

According to the US Attorneys Office of New York County, Zakai solicited funds from investor between 2010 – 2012 and called the venture The Social Innovation Fund. The allegations against Zakai accuse him of squandering the funds for personal use, including country club memberships, shopping sprees and on travel expenses. Consequently, it is unlikely that investors will be able to recovery their losses from Zakai.

The White Law Group is investigating other avenues of recovery including the liability of the brokerage firm that employed Zakai. When a FINRA registered broker, such as Zakai, conducts business outside of the firm with whom he is registered, the activity may be considered “selling away.” If a registered broker “sells away” from his firm, the brokerage firm may still be liable for negligent supervision and may be responsible for investment losses in a FINRA dispute resolution claim.

According to FINRA’s BrokerCheck, Zakai worked with Gunnallen Financial from 06/2006 – 11/2009, First Merger Capital from 04/2010 – 04/2011, and Blackwall Capital Markets from 07/2012 – 09/2012.

If you invested with Ronen Zakai and would like to speak to a securities attorney about your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

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