ROCKLAND POST DESK
A Stony Point resident has admitted in federal court that he defrauded investors, including friends and members of his own community, out of millions of dollars.
Federal prosecutors said Solomon Lichtenstein, 30, pleaded guilty Wednesday to securities fraud before U.S. Magistrate Judge Victoria Reznik in Manhattan.
According to the U.S. Attorney’s Office for the Southern District of New York, Lichtenstein operated two investment entities — Taraxa Capital Fund, LP and Lightstone Trading Inc. — and used them to solicit money from investors between July 2022 and August 2024.
Prosecutors said he raised more than $3 million from dozens of victims, claiming his trading strategies and risk-management methods were producing strong returns.
In reality, federal authorities said less than $600,000 of the money was actually invested, and those investments suffered significant losses.
Investigators said Lichtenstein diverted roughly $1 million in investor funds for personal expenses, including mortgage payments, travel, dining, and cash withdrawals.
After accounting for funds returned to some investors, victims lost more than $1.5 million, according to prosecutors.
The case was investigated by the Federal Bureau of Investigation with assistance from the U.S. Securities and Exchange Commission, which has also filed a separate civil case tied to the alleged scheme.
Lichtenstein pleaded guilty to one count of securities fraud, which carries a maximum possible sentence of five years in federal prison. Sentencing is scheduled for July 8.
Cases like this are not uncommon, authorities say, particularly when investments are pitched among friends, relatives, and trusted community networks. Financial regulators often warn that fraud schemes can spread quickly in close-knit communities where people rely on personal relationships rather than formal financial vetting.
Officials encourage investors to check registrations and backgrounds through the U.S. Securities and Exchange Commission or other regulatory agencies before investing money.