Marc Frankel Charged by SEC with Stealing from Clients

INVESTORS: Former investment adviser Marc Frankel was charged by the SEC with misappropriating client funds to pay his personal expenses.

Marc Frankel, the former investment adviser representative, was charged by the SEC for misappropriating client funds to pay his personal expenses.

The SEC’s complaint against Frankel alleges that between December 2017 and June 2020, Frankel stole more than $743,000 from two clients, including a Major League Baseball player. Frankel allegedly used their funds to pay personal charges on a credit card in the name of his deceased mother. As alleged in the complaint, those charges included sports tickets, college tuition for Frankel’s children, travel, jewelry, and electronics. Frankel allegedly made several small payments each month in order to evade detection and took other steps to conceal the fraud, such as falsely claiming that the payments were for a credit card held by the baseball player’s personal assistant.

The SEC charged Frankel with violating the antifraud provisions of the Investment Advisers Act. The SEC is seeking a permanent injunction, disgorgement with prejudgment interest, and civil penalties.

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