U.S. Securities and Exchange Commission
Litigation Release No. 21386 / January 21, 2010
Securities and Exchange Commission v. Bernard Daniel Braver, 10 Civ. 0469 (PAC)(S.D.N.Y.)
On January 20, 2010, the Securities and Exchange Commission filed a civil injunctive action in United States District Court for the Southern District of New York charging Bernard Daniel Braver, an unregistered boiler room salesman, with violating the registration and antifraud provisions of the Securities Act of 1933 ("Securities Act") and the Securities Exchange Act of 1934 ("Exchange Act"). Braver has agreed to settle the case, without admitting or denying the Commission's allegations.
The Commission's complaint, filed in federal court in Manhattan, alleges that from October 2006 to November 2007, Braver was a salesman at Rabinovich & Associates, LP, an unregistered investment company and broker-dealer (sometimes referred to hereafter as the "Fund" or the "firm") that operated out of a storefront boiler room in Brooklyn, New York. The complaint further alleges that from at least November 2003 through November 2007, the Fund's principals, Alex Rabinovich and Joseph Lovaglio, and Braver and other salesmen, fraudulently raised at least $2,767,811 from at least 169 investors nationwide, including senior citizens and retirees, through the sale of limited partnership interests in the Fund and, in a few instances, other securities. Braver allegedly raised at least $157,000 of that, and received approximately $49,800 in salary and commissions in connection with his fraudulent offer and sale of interests in the Fund. The complaint further alleges that in soliciting investors, Braver misrepresented the Fund's track record and performance, falsely represented to investors and prospective investors that Rabinovich & Associates had a Wall Street address and touted Alex Rabinovich's purported trading acumen while failing to disclose that Rabinovich had been barred by the National Association of Securities Dealers ("NASD") from associating with any NASD-member broker-dealer.
As a result of his conduct, the complaint alleges that Braver violated Sections 5(a), 5(c) and 17(a) of the Securities Act, and Sections 10(b) and 15(a) of the Exchange Act, and Rule 10b-5 thereunder.
Without admitting or denying the Commission's allegations, Braver has agreed to settle the charges by consenting to the entry of a final judgment permanently enjoining him from further violations of the foregoing provisions, and ordering him to pay disgorgement of $49,800 plus prejudgment interest thereon of $4,109.83, but waiving payment of those amounts and not imposing a civil penalty based upon Braver's sworn representations of his financial condition.
The Commission previously brought an action against, Rabinovich & Associates, Alex Rabinovich and Lovaglio, SEC v. Rabinovich & Associates, LP, Alex Rabinovich and Joseph Lovaglio, 07 Civ. 10547 (GEL) (S.D.N.Y.) [LR-20372 (November 27, 2007)] (the "Rabinovich case"). In addition, Alex Rabinovich pleaded guilty to criminal charges arising out of the conduct alleged in the Commission's complaint in the Rabinovich case. United States v. Alex Rabinovich, Crim. Information No. 1:08-Cr-220 (DC) (S.D.N.Y.). [LR-20637 (July 8, 2008)].
See Also: SEC Complaint