Manhattan investment adviser Alan Burak pleaded guilty Tuesday to orchestrating an investment fraud that drained more than $4 million from his clients, prosecutors said. The 41-year-old admitted to first-degree grand larceny, first-degree scheme to defraud and two counts of securities fraud tied to his firm, Never Alone Capital. Under a negotiated plea, judges are expected to enter roughly $4.1 million in judgments for a dozen victims and sentence Burak to a promised term of 3-to-9 years, with sentencing set for May 12, 2026.
Prosecutors' account
According to the Manhattan District Attorney’s Office, Burak ran Never Alone Capital as a sham investment advisory firm that pulled in dozens of investors, then used their deposits on himself instead of trading. The plea resolves a 26-count indictment unsealed last year, after the office first charged Burak in a $4M fraud scheme in February 2025. Prosecutors said they will seek both restitution and prison time as part of the agreement.
How prosecutors say the fraud worked
Court filings and a related civil complaint say Burak told investors that Never Alone Capital managed $157 million, even though brokerage and bank records showed the firm received about $5 million and its monthly brokerage balance never topped $27,500. The Securities and Exchange Commission found that Burak sent only $266,285 from Never Alone’s operating account to brokerage firms, while more than $5 million moved into his personal accounts to cover expenses instead of being invested on clients’ behalf. The filings also include a July 2022 audio recording in which Burak appears to admit, “I am fake,” according to the SEC.
Victims and restitution
Prosecutors say twelve victims are covered by the judgment orders and that investors collectively lost more than $4 million, including one person who alone sent over $2 million. Reporting by Reuters detailed how several victims were brought in through Spanish-language financial education programs. Under the plea, courts are to enter about $4.1 million in judgments aimed at starting the process of compensating victims, according to the D.A.’s office.
Legal next steps
As part of the deal, a judge is expected to impose the agreed 3-to-9 year sentence and enter the judgment orders at the May 12, 2026 hearing, the D.A.’s office said. The office credited assistance from the SEC, FINRA, Morgan Stanley and Interactive Brokers in putting the case together, and identified Assistant District Attorneys Michael Luongo, Elyssa Abuhoff and Anne Ternes as the prosecutors on the matter, details that appeared in Alvin Bragg. Separate from the criminal case, the SEC’s civil action is still pending and could lead to additional remedies for investors.
What to watch
The May 12 sentencing will determine whether the negotiated prison term stands and how restitution orders begin to play out, including what portion of the roughly $4.1 million judgment can actually be recovered. Investors who believe they were harmed can review case materials and contact information in the Securities and Exchange Commission announcement or by reaching out to the Manhattan D.A.’s Victim Services Unit.
