Alan Burak Indicted in $4M Latino Community Fraud Scheme.
Manhattan District Attorney Alvin L. Bragg Jr. announced that Alan Burak, 40, has been indicted for allegedly running an investment fraud scheme that defrauded dozens of investors.
Burak is accused of stealing more than $4 million between April 2018 and May 2023 through his fraudulent investment firm, Never Alone Capital, LLC (NAC). The indictment includes a staggering 26 counts, including Grand Larceny and Securities Fraud.
In a statement, District Attorney Bragg said, “As alleged, Alan Burak targeted those who would put their faith in him and entrust him with their savings: friends and family in Mexico, and members of the Latino community who came to him for financial advice.”
Burak's deceptive tactics have raised serious concerns about financial fraud in vulnerable communities, especially when trust is manipulated by individuals claiming to be experts in financial matters.
Burak’s Deceptive Tactics to Build Trust
According to court documents, Burak began by targeting friends and family members in Mexico. He later expanded his operations within the Latino community, where he positioned himself as an expert financial advisor.
Burak even presented himself as a speaker for a financial education organization that catered specifically to Latino individuals. His strategy was to convince those with limited investment experience to trust him with their savings.
Burak falsely claimed that NAC had been operating successfully since 2006, boasting that the firm was profitable every year.
In addition, he exaggerated the company's assets, stating that it managed $157 million, when in reality, it received only about $5 million from investors.
Misleading Claims of Expertise and Guaranteed Returns
Burak's fraudulent activities included making false claims about his qualifications and the performance of NAC.
He told investors that he held securities licenses and guaranteed high returns on investments. In one instance, he promised an incredible 50% return within just three months.
As if that wasn’t enough, Burak provided his investors with fraudulent “Account and Activity Statements,” which appeared to show growing returns. These statements convinced investors to send even more money to NAC, believing their investments were growing.
Falsified Documents and Personal Use of Investor Funds
To further cover his tracks, Burak fabricated documents, including one that purportedly came from a brokerage firm.
This fake document claimed that NAC had over $197 million in assets, but the reality was far different. In fact, the balance in NAC’s brokerage account never exceeded $27,500.
Instead of investing the $4 million sent by his investors, Burak funneled the money into his personal savings account.
He spent over $5 million from investor contributions, business loans, and cash advances for personal expenses. Only $266,285 of the funds were used to send to brokerage houses, further exposing his fraudulent behavior.
Investors Left Stranded and Deceived
By 2023, Burak stopped allowing investors to withdraw their funds altogether. Despite having provided them with statements showing that their money was available for withdrawal, Burak ignored repeated requests for payouts. In some cases, he even offered payment plans or sent pictures of postdated checks, all of which bounced.
A Broader Warning on Financial Frauds in Vulnerable Communities
This case highlights the dangers of investment fraud, especially when scammers target individuals who trust them because of personal connections or community ties. The Latino community, in this case, was particularly vulnerable to Burak’s deceptive promises and expertise.
Unfortunately, such schemes often go unnoticed until substantial financial damage is done.
The investigation into Burak's activities is ongoing, and District Attorney Bragg’s office encourages anyone who believes they may have been a victim of Burak’s fraudulent actions to come forward.
The Investigation and Prosecution Process
The prosecution of Burak’s case is being handled by Assistant District Attorneys Michael Luongo, Elyssa Abuhoff, and Anne Ternes, under the supervision of several high-ranking officials within the Manhattan District Attorney’s office.
The investigation was made possible by a dedicated team of financial fraud experts, forensic accountants, and investigators.
Financial Frauds Bureau Chief Kofi Sansculotte emphasized the importance of thorough investigations in cases like this, stating, “Those who take advantage of others to steal their hard-earned money will be held accountable.”
The collaboration between various investigative teams and analysts, including Senior Financial Investigator Jesse Mihalik, underscores the complexity and significance of uncovering and prosecuting financial fraud.
Key Takeaways: Protect Yourself from Investment Fraud
- Verify credentials: Always check if the person or firm is licensed and registered with regulatory authorities.
- Watch for high returns: Be cautious if someone guarantees a high return on investment in a short amount of time.
- Review documents carefully: Always ask for proof of the legitimacy of any claims made by an investor or firm.
- Be cautious of family and community connections: Fraudsters often exploit personal relationships and community trust to gain access to funds.
