SEC Charges Owner of Real Estate Investment Company with Defrauding Investors
The Securities and Exchange Commission (SEC) has charged Seth P
The Securities and Exchange Commission (SEC) has charged Seth P. Levine, president and owner of Norse Holdings, LLC, with defrauding over 60 investors, primarily from the Orthodox Jewish community, by raising millions through false claims about real estate investments. Levine allegedly misrepresented the profitability of apartment complexes, used forged documents, commingled funds, and generated fake profits through mortgage fraud to pay returns, totaling millions in investor funds. The SEC alleges violations of federal securities laws, and Levine has agreed to settle, with the court to determine disgorgement, interest, and penalties. In parallel, the U.S. Attorney’s Office for the District of New Jersey has filed criminal charges against Levine. The case highlights fraudulent schemes targeting close-knit communities and underscores the importance of investor vigilance.
The Securities and Exchange Commission (SEC) has charged Seth P. Levine, president and owner of Norse Holdings, LLC, with defrauding over 60 investors, primarily from the Orthodox Jewish community, by raising millions through false claims about real estate investments. Levine allegedly misrepresented the profitability of apartment complexes, used forged documents, commingled funds, and generated fake profits through mortgage fraud to pay returns, totaling millions in investor funds. The SEC alleges violations of federal securities laws, and Levine has agreed to settle, with the court to determine disgorgement, interest, and penalties. In parallel, the U.S. Attorney’s Office for the District of New Jersey has filed criminal charges against Levine. The case highlights fraudulent schemes targeting close-knit communities and underscores the importance of investor vigilance. The Securities and Exchange Commission (SEC) charged Seth P. Levine, president and owner of Norse Holdings, LLC, with defrauding over 60 investors, many from the Orthodox Jewish community, by raising millions through false claims about real estate investments. From 2015 to 2019, Levine allegedly used misleading documents, forged signatures, and commingled funds to misrepresent the profitability of apartment complexes and pay fake returns, while engaging in mortgage fraud. The SEC alleges violations of federal securities laws, and Levine has agreed to settle, which includes a permanent injunction and pending determination of disgorgement, interest, and penalties. A parallel criminal case was also announced by the U.S. Attorney’s Office for the District of New Jersey. The SEC encourages investors to be vigilant and use available resources to avoid fraud.
Extracted insights
- person john v. donnelly iii
- agency the sec’s complaint
- agency the sec’s investigation
- agency the sec’s office of investor education and advocacy
- agency the securities and exchange commission
- The Securities and Exchange Commission charged a New Jersey resident with defrauding investors
- The SEC’s complaint alleges Seth P. Levine, the president and owner of Norse Holdings, LLC, a real estate investment and management company, sold membership interests in limited liability companies that purchased and owned apartment complexes
- Levine raised millions of dollars from more than 60 investors, including family, friends, and other investors, many of whom belonged to the Orthodox Jewish community
- Levine used misleading and false representations that masked Norse Holdings’ underlying financial problems and its inability to pay promised returns without using new investor monies or proceeds from a related mortgage fraud
- Levine provided investors with documents reflecting false and inaccurate information concerning the profitability of the apartment complexes
- Levine sold overlapping ownership interests to investors using false operating agreements and, at times, forged signatures
- Levine frequently commingled investor funds to prop up real estate holdings that were struggling
- Levine paid investors with fake profits generated by the mortgage fraud Levine conducted using the same properties
- Scott A. Thompson said As alleged in the complaint, Levine repeatedly lied to investors in this close knit community to fraudulently secure millions of dollars in investments
- The SEC’s complaint charges Levine with violating the antifraud provisions of the federal securities laws
- Levine has agreed to settle the charges against him
- The settlement would permanently enjoin Levine from violating the charged provisions of the federal securities laws
- The U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Levine in connection with certain of the conduct underlying the SEC’s action
- The SEC’s investigation was conducted by Suzanne C. Abt of the Philadelphia Regional Office
- The litigation will be led by John V. Donnelly III
- The SEC’s Office of Investor Education and Advocacy encourages investors to review the Investor Alerts, Have Something in Common with Someone Selling an Investment? It May Make You a Target for Fraud and Avoiding Investment Fraud in Your Faith-Based Community
- The SEC’s Office of Investor Education and Advocacy encourages investors to access the investor protection resources at Investor.gov
- The SEC’s Office of Investor Education and Advocacy encourages investors to learn more about Ponzi scheme red flags and check out the background of their investment professional by using the free and simple search tool at the SEC’s Investor.gov website
The Securities and Exchange Commission today charged a New Jersey resident with defrauding investors, most of whom were members of the Orthodox Jewish community, who invested millions based on false claims about investments in real estate. The SEC’s complaint alleges that Seth P. Levine, the president and owner of Norse Holdings, LLC, a real estate investment and management company, sold membership interests in limited liability companies that purchased and owned apartment complexes. According to the complaint, from at least February 2015 through August 2019, Levine raised millions of dollars from more than 60 investors, including family, friends, and other investors, many of whom belonged to the Orthodox Jewish community. In offering the interests, Levine allegedly used misleading and false representations that masked Norse Holdings’ underlying financial problems and its inability to pay promised returns without using new investor monies or proceeds from a related mortgage fraud. Specifically, the complaint alleges that Levine provided investors with documents reflecting false and inaccurate information concerning the profitability of the apartment complexes; sold overlapping ownership interests to investors using false operating agreements and, at times, forged signatures; frequently commingled investor funds to prop up real estate holdings that were struggling; and paid investors with fake profits generated by the mortgage fraud Levine conducted using the same properties. “As alleged in the complaint, Levine repeatedly lied to investors in this close knit community to fraudulently secure millions of dollars in investments,” said Scott A. Thompson, Acting Co-Regional Director of the SEC’s Philadelphia Regional Office. “We will continue to diligently pursue those who prey on investors to exploit their trust in situations like this.” The SEC’s complaint charges Levine with violating the antifraud provisions of the federal securities laws. Levine has agreed to settle the charges against him. The settlement, which is subject to court approval, would permanently enjoin Levine from violating the charged provisions of the federal securities laws and provides that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date. In a parallel action, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Levine in connection with certain of the conduct underlying the SEC’s action. The SEC’s investigation was conducted by Suzanne C. Abt of the Philadelphia Regional Office and supervised by Scott A. Thompson. The litigation will be led by John V. Donnelly III and supervised by Jennifer Chun Barry. The SEC’s Office of Investor Education and Advocacy encourages investors to review the Investor Alerts, Have Something in Common with Someone Selling an Investment? It May Make You a Target for Fraud and Avoiding Investment Fraud in Your Faith-Based Community, and to access the investor protection resources at Investor.gov. Investors can also learn more about Ponzi scheme red flags and check out the background of their investment professional by using the free and simple search tool at the SEC’s Investor.gov website.
The Securities and Exchange Commission today charged a New Jersey resident with defrauding investors, most of whom were members of the Orthodox Jewish community, who invested millions based on false claims about investments in real estate. The SEC’s complaint alleges that Seth P. Levine, the president and owner of Norse Holdings, LLC, a real estate investment and management company, sold membership interests in limited liability companies that purchased and owned apartment complexes. According to the complaint, from at least February 2015 through August 2019, Levine raised millions of dollars from more than 60 investors, including family, friends, and other investors, many of whom belonged to the Orthodox Jewish community. In offering the interests, Levine allegedly used misleading and false representations that masked Norse Holdings’ underlying financial problems and its inability to pay promised returns without using new investor monies or proceeds from a related mortgage fraud. Specifically, the complaint alleges that Levine provided investors with documents reflecting false and inaccurate information concerning the profitability of the apartment complexes; sold overlapping ownership interests to investors using false operating agreements and, at times, forged signatures; frequently commingled investor funds to prop up real estate holdings that were struggling; and paid investors with fake profits generated by the mortgage fraud Levine conducted using the same properties. “As alleged in the complaint, Levine repeatedly lied to investors in this close knit community to fraudulently secure millions of dollars in investments,” said Scott A. Thompson, Acting Co-Regional Director of the SEC’s Philadelphia Regional Office. “We will continue to diligently pursue those who prey on investors to exploit their trust in situations like this.” The SEC’s complaint charges Levine with violating the antifraud provisions of the federal securities laws. Levine has agreed to settle the charges against him. The settlement, which is subject to court approval, would permanently enjoin Levine from violating the charged provisions of the federal securities laws and provides that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date. In a parallel action, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Levine in connection with certain of the conduct underlying the SEC’s action. The SEC’s investigation was conducted by Suzanne C. Abt of the Philadelphia Regional Office and supervised by Scott A. Thompson. The litigation will be led by John V. Donnelly III and supervised by Jennifer Chun Barry. The SEC’s Office of Investor Education and Advocacy encourages investors to review the Investor Alerts, Have Something in Common with Someone Selling an Investment? It May Make You a Target for Fraud and Avoiding Investment Fraud in Your Faith-Based Community, and to access the investor protection resources at Investor.gov. Investors can also learn more about Ponzi scheme red flags and check out the background of their investment professional by using the free and simple search tool at the SEC’s Investor.gov website.