Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Solomon Lichtenstein pleaded guilty on Mar. 11 before U.S. Magistrate Judge Victoria Reznik to securities fraud for defrauding investors in two investment vehicles he managed, according to an announcement by United States Attorney for the Southern District of New York, Jay Clayton.
The case is significant because it involves millions of dollars solicited from friends, relatives, and community members under false pretenses. Prosecutors say that Lichtenstein misrepresented his investment qualifications and strategy, as well as his track record and returns.
"Solomon Lichtenstein solicited and received millions of dollars from friends, relatives, and members of his community on the back of false statements and misrepresentations regarding his investment qualifications and strategy, track record, and returns," said U.S. Attorney Jay Clayton. "When investment advisers abuse the trust of their clients and use New Yorkers’ hard-earned money for their personal benefit, our Office will hold them criminally accountable."
According to court documents and statements made in court, Lichtenstein operated the scheme over a period of about two years from July 2022 through August 2024. He raised more than $3 million from dozens of victims but invested less than $600,000 of those funds while incurring significant losses through unsuccessful trades. Authorities say he also used approximately $1 million for personal expenses such as mortgage payments, travel, dining, and cash withdrawals. After accounting for some returned funds, investor losses exceeded $1.5 million.
Lichtenstein faces a maximum sentence of five years in prison for one count of securities fraud. The actual sentence will be determined by the judge at a hearing scheduled for July 8, 2026.
Jay Clayton praised the investigative work by the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission—which has filed a separate civil action against Lichtenstein—for its assistance in the investigation.
The prosecution is being handled by Assistant U.S. Attorneys Reyhan Watson, James McMahon, and John Sarlitto from the White Plains Division.
