The Securities and Exchange Commission (SEC) has recently launched administrative proceedings against Daniel E. Levin, the founder and sole managing member of Comprehensive Retirement Planning, LLC (CRP LLC). This development underscores the seriousness of the allegations made against Levin and his company.
Allegation’s Seriousness and Case Information
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Levin, through CRP LLC, is accused of selling unregistered securities of CRP Automotive Portfolio, LP (CRP Fund), another entity he controls. Both CRP LLC and CRP Fund, based in Dallas, Texas, were not registered with the SEC. It is alleged that Levin advised investors on the merits of investments, took an active role in all aspects of investor solicitations and sales, and received transaction-based compensation. These activities took place between April 2017 and December 2018.
Levin’s connection with broker-dealers ceased in August 2014, and he has not been associated with any since. He previously held multiple securities licenses, including the Series 7, 63, and 65 licenses. On July 26, 2023, a judgment was entered against Levin by consent, permanently barring him from future violations of Sections 15(a)(1) of the Exchange Act.
Levin was previously associated with TITAN SECURITIES (CRD 131392) from January 31, 2014, to August 6, 2014. He was also the subject of a previous Commission action. FINRA CRD number 707280 provides more details about Levin’s regulatory history.
Explanation in Simple Terms and the FINRA Rule
In simple terms, the allegations against Levin revolve around his sale of unregistered securities through CRP LLC and his advice to investors on the merits of these investments. This is a serious violation of the Securities Exchange Act, which requires securities offerings to be registered with the SEC unless they qualify for an exemption.
The Financial Industry Regulatory Authority (FINRA) also has rules in place to protect investors. FINRA Rule 2111, for instance, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer. If Levin was providing advice to investors without a reasonable basis for his recommendations, this would be a violation of this rule.
Why It Matters for Investors
Investors rely on the advice and guidance of financial advisors to make informed decisions about their investments. When an advisor sells unregistered securities or provides advice without a reasonable basis, it can lead to significant financial losses for the investor. Moreover, it undermines the trust that is essential for a healthy and functioning investment market.
Investors who have suffered losses due to the actions of Levin or CRP LLC may be able to recover their losses through FINRA Arbitration. Haselkorn & Thibaut, a national investment fraud law firm with over 50 years of experience and a 98% success rate, is currently investigating the advisor and company. They offer free consultations to clients and operate on a “No Recovery, No Fee” policy. Investors can reach them at their toll-free number, 1-800-856-3352.
Red Flags for Financial Advisor Malpractice and How Investors Can Recover Losses
Investors should be aware of certain red flags that could indicate financial advisor malpractice. These include the sale of unregistered securities, advice that seems unsuitable for the investor’s financial situation and goals, and advisors who seem to be pushing certain investments for their own financial gain.
If investors have suffered losses due to such malpractice, they can recover their losses through FINRA Arbitration. This process allows investors to present their case to an impartial arbitrator who will make a decision. Haselkorn & Thibaut specializes in representing investors in FINRA Arbitration proceedings and has a track record of successful financial recoveries for investors.
The firm has offices in Florida, New York, North Carolina, Arizona, and Texas, and offers a free consultation to potential clients. Investors who believe they have been victims of financial advisor malpractice are encouraged to reach out to Haselkorn & Thibaut for assistance.
