The U.S. Securities and Exchange Commission (SEC) issued settled orders 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 marketed as investing in shares of pre-IPO companies. It also settled charges against VCP Financial LLC over letters the firm required retail clients to sign when investing in private funds managed by an affiliated entity, which the SEC found used impermissible liability disclaimer language. Between June 2019 and March 2020, the three respondents solicited investors for StraightPath Venture Partners, LLC and related offerings, provided marketing materials and advice, and received transaction-based compensation without broker registration, in violation of Section 15(a) of the Securities Exchange Act. Shabat and Spiegel, principals of VCP Financial and its predecessor LPS Financial, formed an entity to contract with StraightPath and operated a sales force of unregistered individuals including Orlando. Without admitting or denying the findings, Shabat agreed to pay USD 180,559 in disgorgement and prejudgment interest plus a USD 40,000 civil penalty, Spiegel USD 175,873 plus USD 40,000, and Orlando USD 83,255 plus USD 20,000; all three accepted six-month industry and penny stock suspensions, and the nearly USD 540,000 total will be transferred to the court-appointed receiver in SEC v. StraightPath Venture Partners, LLC for distribution to harmed investors. VCP Financial, found to have violated Section 206(2) of the Investment Advisers Act, consented to a censure and a USD 100,000 civil penalty after the SEC concluded that, between March 2021 and October 2024, the firm’s conflict-of-interest approach and required disclaimers could mislead clients about VCP’s advisory role and suggest an improper waiver of nonwaivable legal claims.
U.S. Securities & Exchange Commission 2025-01-14
U.S. Securities and Exchange Commission settles StraightPath-related unregistered broker charges with nearly USD 540,000 in payments and censures VCP Financial over liability disclaimers
The SEC settled charges against investment adviser representatives Tamir Shabat, Danny Z. Spiegel, and Joseph J. Orlando, Jr. for acting as unregistered brokers, violating Section 15(a) of the Securities Exchange Act. They agreed to pay nearly USD 540,000 in penalties and suspensions. VCP Financial LLC was censured and fined USD 100,000 for misleading disclaimers and conflict-of-interest issues under Section 206(2) of the Investment Advisers Act.