Brooklyn Advisor Marat Likhtenstein Settles SEC Fraud Claims at Osaic Wealth

Osaic Wealth and its former Brooklyn-based investment advisor, Marat Likhtenstein, are at the center of recent regulatory actions that have shaken investor confidence in the local financial community. With 19 years of securities industry experience and a career spanning noted firms such as Signator Investors (2004–2018) and Osaic Wealth (2018–2024), Marat Likhtenstein (CRD# 2470480) is accused by the Securities and Exchange Commission (SEC) of orchestrating an offering fraud that raised over $4.1 million from at least 15 advisory clients. The majority of these clients were elderly members of Brooklyn’s Russian-American Jewish community—individuals who often place great trust in advisors who share their language, culture, and values.

The Allegations: Trust Undermined by Promises

When choosing a financial advisor, many investors rely heavily on trust and personal affinity, especially within close-knit communities. In the case of Marat Likhtenstein, that trust allegedly led to devastating consequences. According to the SEC litigation release dated February 6, 2026, Mr. Likhtenstein is accused of soliciting, recommending, and selling “self-issued investments in the form of promissory notes” to his advisory clients, promising outsized returns through lucrative business opportunities. The pitch: invest in his side business for extraordinary interest rates, far above typical market offerings.

Unfortunately, according to the SEC, those promises unraveled. Rather than investing funds for the clients’ benefit, Mr. Likhtenstein allegedly misappropriated the money. The complaint details that approximately $940,000 was paid to other investors in a fashion consistent with a Ponzi scheme, while a staggering $3.2 million was reportedly spent on personal expenses. For those who entrusted their life savings—often the result of years of sacrifice—the betrayal could not feel more complete. As Forbes notes, a single fraudulent advisor can cause losses that ripple through both financial and emotional well-being.

Who Is Marat Likhtenstein? A Background Built on Experience

Marat Likhtenstein was hardly an unknown quantity in the financial world. With nearly two decades in the securities industry—first with Signator Investors in Brooklyn (2004–2018), then with Osaic Wealth (2018–2024, formerly Kestra Private Wealth)—his track record suggested reliability and established credentials. He successfully passed the Series 66 examination, which qualifies advisors to operate both as investment adviser representatives and broker-dealer agents. However, as of February 2026, he is no longer licensed as an investment advisor.

Despite this impressive resume, regulators note that credentials do not guarantee ethical behavior. Marat Likhtenstein’s FINRA BrokerCheck record currently lists five pending investor complaints, all filed in 2025. These complaints collectively seek over $2.4 million in damages, alleging misappropriation of funds during his tenure at Osaic Wealth.

Investment Fraud and the Reality of Bad Advice

Investment fraud remains an unfortunate risk for investors. According to the Association of Certified Fraud Examiners, a significant percentage of financial fraud comes not from strangers, but from trusted professionals within investors’ own circles. Industry studies estimate that about 7% of financial advisors have some form of disclosure event—such as client complaints, regulatory actions, or even criminal charges—on their official records. While the vast majority of advisors act with integrity, these statistics highlight the real risks to unsuspecting clients.

One of the more common vehicles for fraud is the self-issued promissory note—the instrument at the core of the allegations against Mr. Likhtenstein. Despite how official these notes can seem, they may expose investors to substantial risks, particularly if the note is not backed by a credible third party or supervised by the advisor’s firm. This is why organizations like FINRA and the SEC require any such “private securities transactions,” often called “selling away,” to be pre-approved and disclosed to the advisor’s employing firm (FINRA Rule 2150).

Breaking Down the Charges: Understanding What Went Wrong

The SEC’s investigation alleges that Mr. Likhtenstein failed to disclose these transactions to his firm, keeping them off the books and without proper oversight. Sales pitches reportedly emphasized high returns and exclusive access, but according to the SEC’s account, most of the money raised was diverted either to pay previous investors or for personal expenses—a textbook example of how Ponzi schemes operate.

Perhaps the most painful aspect is the targeting of elderly investors in a close community. For many, the financial impact is magnified by the emotional fallout—trust between neighbors, friends, and family can take years, if not generations, to rebuild.

Aftermath and Investor Takeaways

Following the September 2025 charges, Marat Likhtenstein entered into a bifurcated settlement with the SEC in February 2026. The settlement includes injunctive relief and monetary penalties. As is common in regulatory actions, he neither admitted nor denied the allegations—a conclusion that may offer little comfort to those affected.

What can investors do to protect themselves from similar situations? The lessons from this case apply to all:

• Research your advisor: Always check your advisor’s history and disciplinary record. Use resources such as FINRA BrokerCheck and this complaints resource to uncover any disclosure events or red flags.
• Be skeptical of high returns: If an investment promises returns far higher than the market average, pause and ask detailed questions. Extraordinary returns almost always carry extraordinary risks.
• Know what you’re buying: Never proceed with an investment you don’t fully understand. Demand clear explanations, supporting documents, and third-party verification if possible.
• Insist on transparency and official documentation: Beware of “side business” investments or anything being offered outside your advisor’s firm. All recommendations and transactions should be documented through legitimate, regulated channels.
• Diversify your trust: Consider spreading your assets across multiple advisors or institutions to avoid catastrophic loss from one bad actor.

Conclusion: The Value of Vigilance

The world of investments is complicated—full of industry jargon, complex products, and regulatory fine print. Ultimately, all investment relationships are built on trust. But as the case of Marat Likhtenstein and Osaic Wealth illustrates, due diligence and skepticism are vital tools for every investor. The sad reality is that bad advice and even outright fraud cost Americans billions each year, as highlighted by sources such as Investopedia.

While regulatory actions and settlements may offer some restitution, the burden to safeguard your financial future falls above all on you. Regularly review your advisor’s reputation and credentials, think critically about investment pitches, and if something sounds too good to be true—it almost certainly is.