Solomon Lichtenstein, 30, of Stony Point has admitted in federal court that he was no financial wizard, pleading guilty on March 11 to securities fraud after raising millions from friends, relatives and neighbors. Prosecutors say he promised impressive returns through two investment vehicles, invested only a fraction of the cash, and siphoned off a large chunk for himself. According to the government, the scheme left victims with more than $1.5 million in losses. Lichtenstein is scheduled to be sentenced on July 8, 2026, and faces a statutory maximum of five years in prison.
What prosecutors say
In a detailed account from the U.S. Attorney’s Office for the Southern District of New York, Lichtenstein is accused of running the scheme from July 2022 through August 2024 and pulling in more than $3 million from dozens of investors. Prosecutors say he put less than $600,000 into actual investments and diverted roughly $1 million for mortgage payments, travel, dining and cash withdrawals. The FBI handled the investigation, and SDNY’s White Plains Division is prosecuting the case.
SEC civil action and allegations
The Securities and Exchange Commission filed a parallel civil complaint in October 2025 that tracks a similar story. The agency says Lichtenstein raised about $2.7 million through Taraxa Capital Fund, LP and Lightstone Trading Inc. According to the SEC, he misappropriated roughly $966,000 for personal expenses and used about $1.1 million to make Ponzi-style payments to cover redemptions and interest obligations. The SEC is seeking injunctions, disgorgement and civil penalties.
Who was targeted
Prosecutors and local reporting paint a familiar but painful picture. Many investors were people who knew Lichtenstein personally, including family members, neighbors and community contacts who bought into his pitch. As Daily Voice reported, investors received account statements and were told that a day-trading strategy was steadily generating gains, numbers that prosecutors now say were fabricated.
Next steps in court
Lichtenstein pleaded guilty to one count of securities fraud in Manhattan federal court, according to the U.S. Attorney’s Office for the Southern District of New York. Sentencing is set for July 8, 2026. The charge carries a maximum statutory penalty of five years in prison. Assistant U.S. Attorneys Reyhan Watson, James McMahon and John Sarlitto are handling the prosecution.
What this means for investors
Between the SEC’s civil suit and the criminal case, there are multiple legal channels that could help victims claw back some of their money. The SEC is asking for disgorgement and civil penalties, while the criminal case could result in a restitution order at sentencing. The government filings also create a public record that victims and private attorneys can lean on in any additional civil actions. Authorities are urging anyone with relevant information to contact the FBI or the U.S. Attorney’s Office in SDNY.
