By Jonathan Stempel
NEW YORK (Reuters) – A New York City man was charged by federal and local authorities on Wednesday with stealing millions of dollars for his firm Never Alone Capital LLC, even as he created an audio recording where he described himself as a failure and his firm as fake.
Alan Burak, 40, of Manhattan, was accused in a 26-count indictment of grand larceny, securities fraud, falsifying business records and other charges, Manhattan District Attorney Alvin Bragg said.
Burak pleaded not guilty at a Wednesday court hearing, his lawyer said. The U.S. Securities and Exchange Commission filed a related civil lawsuit.
Authorities said Burak raised $4 million, including from friends and family in Mexico and people he met through a company offering financial education to Hispanics, by falsely claiming he had invested profitably since 2006, oversaw $157 million of assets, and would invest on “Wall Street.”
Burak allegedly diverted much of investors’ money to himself, including to pay for an adult-only subscription service, travel, and purchases by his wife, authorities said.
The alleged fraud occurred between 2018 and 2023.
According to the SEC, Burak recorded himself appearing to take stock on July 25, 2022, when his fraud was in “full swing,” and did not like what he saw.
“Alan, what’s going on in your life?” the recording said, according to the SEC. “I am exhausted. I feel that … I feel that I am failing every day. I am failing because I am fake. I have no real business. I am literally stealing money from people. I have no business. I haven’t paid my taxes. I am not growing at all. I don’t have a real LLC. I don’t have a real fund. I don’t have a real hedge fund.”
Bail for Burak was set at $500,000 cash plus two $1 million bonds, Bragg’s office said.
“Alan voluntarily returned to New York to address these allegations,” Burak’s lawyer Eric Creizman said in an statement. “We will address these charges in court and put the government to its proof.”
(Reporting by Jonathan Stempel in New York; Editing by David Gregorio)
