Three Investment Adviser Representatives Settle SEC Charges for Acting as Unregistered Brokers

The Securities and Exchange Commission today announced settled charges against investment adviser representatives Tamir Shabat, Danny Z. Spiegel, and Joseph J. Orlando, Jr. for acting as unregistered brokers in selling membership interests in LLCs that purported to invest in shares of pre-IPO companies. The SEC also announced settled charges against VCP Financial LLC stemming from its use of impermissible liability disclaimers in a letter it required retail clients to execute when investing in private funds managed by an affiliated entity. According to the SEC’s orders, between June 2019 and March 2020, Shabat, Spiegel, and Orlando each solicited investors for StraightPath Venture Partners, LLC, an entity that offered investments in LLCs that purported to invest in shares of pre-IPO companies and that was previously charged by the SEC.