Adam Kaplan

Full Report

Key Points

• Adam Kaplan, a Long Island-based investment advisor, faces serious charges related to a multimillion-dollar fraud and money laundering scheme.
• Allegations include defrauding investors, laundering proceeds, attempting to bribe public officials, and threatening witnesses.
• Kaplan operated through firms like Grays Peak Capital and Grays Peak Ventures, misleading clients about investment opportunities.
• The U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office for the Eastern District of New York have taken legal action against her.
• Kaplan has been barred by the Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member firm.
• Significant financial and reputational risks exist for investors and associates due to Kaplan’s alleged criminal activities.

Overview

Adam Kaplan is a former financial advisor based in Long Island, New York, who operated through her firms, Grays Peak Capital and Grays Peak Ventures. She provided investment advisory services, primarily targeting clients for real estate and other investment opportunities. Kaplan, along with her brother Brandon Kaplan, promoted themselves as experienced professionals capable of delivering high returns. However, her activities came under scrutiny, leading to criminal and civil charges for orchestrating a fraudulent scheme that misled investors and involved illicit financial activities. Kaplan’s operations were conducted under the guise of legitimate investment management, but investigations revealed a pattern of deception and illegal conduct.

Allegations and Concerns

Adam Kaplan faces multiple serious allegations, as detailed in legal documents and media reports:

• Securities Fraud and Wire Fraud: Kaplan is accused of defrauding dozens of investors out of millions by misrepresenting investment opportunities in real estate and other ventures. She allegedly promised high returns but used investor funds for personal expenses and to pay off earlier investors in a Ponzi-like scheme.
• Money Laundering: Kaplan is charged with laundering illicit funds, including proceeds from drug trafficking, as part of a sting operation. She allegedly facilitated the transfer of these funds through her firms.
• Bribery Attempts: Kaplan is accused of attempting to bribe local officials in Great Neck, New York, to secure favorable treatment for real estate projects.
• Witness Tampering and Obstruction: A superseding indictment alleges Kaplan attempted to threaten witnesses and obstruct justice to hinder investigations into her activities.
• Misrepresentation of Credentials: Kaplan falsely claimed to be a registered investment advisor, misleading clients about her qualifications and the legitimacy of her operations.
  These allegations have led to a criminal indictment and a parallel SEC civil action, highlighting the severity of her alleged misconduct.

Customer Feedback

Due to the nature of Kaplan’s activities and the ongoing legal proceedings, direct customer reviews are scarce in the provided sources. However, the impact on investors can be inferred from legal documents:

• Negative Feedback: Investors were reportedly defrauded of millions, with Kaplan allegedly misappropriating funds for unauthorized personal and business expenses. One report notes that “dozens of investors” suffered significant losses due to her Ponzi-like scheme, indicating widespread financial harm.
• Lack of Positive Feedback: No positive customer testimonials or reviews are mentioned in the sources, likely due to the fraudulent nature of Kaplan’s operations. The absence of positive feedback underscores the deceptive practices that misled clients.
  Specific quotes from victims are not provided in the sources, but the scale of the alleged fraud suggests significant dissatisfaction among affected investors.

Risk Considerations

The following risks are associated with Adam Kaplan’s activities:

• Financial Risk: Investors face substantial financial losses due to Kaplan’s alleged misappropriation of funds. The Ponzi-like scheme and money laundering activities indicate a high likelihood of unrecoverable investments.
• Reputational Risk: Association with Kaplan or her firms could damage the reputation of investors, business partners, or financial institutions linked to her operations, given the public nature of the charges.
• Legal Risk: Kaplan’s ongoing criminal and civil cases pose risks for any entities or individuals involved with her firms. Potential legal liabilities include lawsuits from defrauded investors or regulatory penalties.
• Operational Risk: Kaplan’s firms, Grays Peak Capital and Grays Peak Ventures, are likely defunct or under severe scrutiny, making any ongoing business dealings highly risky.

Business Relations and Associations

Adam Kaplan operated primarily through Grays Peak Capital and Grays Peak Ventures, with her brother Brandon Kaplan as a key associate. Notable relationships include:

• Brandon Kaplan: Adam’s brother and co-conspirator, also charged in the fraud and money laundering scheme. He played a significant role in the operations of the firms.
• Local Officials in Great Neck: Kaplan allegedly attempted to bribe officials to facilitate real estate projects, though specific names are not disclosed in the sources.
• Investors and Clients: Kaplan targeted dozens of investors, primarily in the U.S., with false promises of high returns. The exact identities of these clients are not specified.
• Drug Traffickers: As part of a sting operation, Kaplan allegedly laundered money for individuals she believed were involved in narcotics trafficking, indicating connections to criminal networks.
  No legitimate partnerships with reputable financial institutions or firms are noted, suggesting Kaplan’s operations were largely independent and fraudulent.

Legal and Financial Concerns

Adam Kaplan faces significant legal and financial issues, as outlined below:

• Criminal Indictment: Kaplan is charged with wire fraud, money laundering, bribery, and obstruction of justice. These charges carry potential penalties of up to 20 years for fraud counts and 7 years for money laundering, with an initial court appearance scheduled in the Eastern District of New York.
• SEC Civil Action: The SEC filed a complaint against Kaplan for securities fraud, seeking disgorgement of ill-gotten gains, civil penalties, and a permanent injunction from future violations.
• FINRA Bar: Kaplan has been permanently barred by FINRA from associating with any member firm, effectively ending her ability to operate as a registered financial advisor.
• No Bankruptcy Records: No specific mentions of bankruptcy filings by Kaplan or her firms are noted in the sources, but the scale of the fraud suggests significant financial distress.
• Unpaid Debts: While not explicitly detailed, the misappropriation of investor funds implies potential unpaid obligations to clients, though specific debts are not quantified.

Risk Assessment Table

Adam Kaplan’s case represents a severe breach of trust in the financial advisory sector. The allegations of fraud, money laundering, bribery, and obstruction paint a picture of a deliberate and sophisticated scheme to exploit investors. Her actions not only caused significant financial harm but also undermined confidence in the financial system. The involvement of her brother and attempts to bribe officials further indicate a pattern of unethical behavior.

Investors and financial professionals should avoid any association with Adam Kaplan or her firms, Grays Peak Capital and Grays Peak Ventures. Those who may have invested with Kaplan should contact the Department of Justice’s Fraud Section Victim Witness Unit at (888) 549-3945 to report losses. Future investments should be directed toward registered and transparent advisors, verified through FINRA’s BrokerCheck or SEC databases. Always conduct thorough due diligence before entrusting funds to any financial professional.