SEC v. Zvi Feiner; FNR Healthcare, LLC; Erez Baver; Netzach Investments LLC; and Cedarbrook Management, Inc., No. LR-24848, Northern District of Illinois (July 6, 2020) — Press Release
raw: Zvi Feiner, et al.
Zvi Feiner, et al., No. LR-24848 (July 6, 2020)
The SEC obtained a consent judgment against Chicago resident Zvi Feiner, his firm FNR Healthcare, LLC, and partner Erez Baver for running a fraudulent investment scheme that lured at least 62 Orthodox
The SEC obtained a consent judgment against Chicago resident Zvi Feiner, his firm FNR Healthcare, LLC, and partner Erez Baver for running a fraudulent investment scheme that lured at least 62 Orthodox‑Jewish investors in Chicago into a $10 million “low‑risk” nursing‑home and assisted‑living venture, while misappropriating funds for personal use and Ponzi‑style payouts. The defendants were charged with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b‑5 of the Securities Exchange Act of 1934. Baver and his company Cedarbrook Management settled earlier, agreeing to pay $2,253,734 in disgorgement and prejudgment interest and accept permanent injunctive relief. Feiner, FNR, and their related entity Netzach Investments consented to a permanent injunction and will be ordered to pay disgorgement, prejudgment interest, and possible civil penalties, the amounts of which will be set by the court.
The SEC obtained a consent judgment against Chicago resident Zvi Feiner, his firm FNR Healthcare, LLC, and partner Erez Baver for running a fraudulent investment scheme that lured at least 62 Orthodox‑Jewish investors in Chicago into a $10 million “low‑risk” nursing‑home and assisted‑living venture, while misappropriating funds for personal use and Ponzi‑style payouts. The defendants were charged with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b‑5 of the Securities Exchange Act of 1934. Baver and his company Cedarbrook Management settled earlier, agreeing to pay $2,253,734 in disgorgement and prejudgment interest and accept permanent injunctive relief. Feiner, FNR, and their related entity Netzach Investments consented to a permanent injunction and will be ordered to pay disgorgement, prejudgment interest, and possible civil penalties, the amounts of which will be set by the court. The SEC settled with Chicago-based Zvi Feiner, his company FNR Healthcare, LLC, and associated entities for operating a $10 million fraud targeting Orthodox Jewish investors by falsely promising low-risk, high-return investments in nursing homes and assisted living facilities. Feiner and FNR misappropriated funds to pay earlier investors and for personal expenses, violating antifraud provisions of federal securities laws. Without admitting or denying guilt, Feiner and FNR consented to a permanent injunction and agreed to pay disgorgement and prejudgment interest, with exact amounts to be determined by the court. Partner Erez Baver and his company Cedarbrook previously settled, agreeing to pay $2.25 million in disgorgement and interest. Relief defendants Netzach Investments and Cedarbrook were also named to aid in recovering misappropriated investor funds.
Exhibits & Attached Documents (1)
Extracted insights
- $10.00M $10 million $10M–$100M
- $2.25M $2,253,734 $1M–$10M
- company a consent judgment against zvi feiner and fnr healthcare, llc
- person consent judgment
- person erez baver
- company fnr healthcare, llc
- person fraudulent scheme
- person zvi feiner
- SEC obtained consent judgment
- SEC filed complaint
- Feiner operating fraudulent scheme
- Feiner targeted investors in the Orthodox Jewish community in the Chicago area
- Feiner raised more than $10 million
- Zvi Feiner operated a fraudulent investment scheme targeting the Orthodox Jewish community in Chicago
- Zvi Feiner raised more than $10 million from investors
- FNR Healthcare, LLC operated a fraudulent investment scheme targeting the Orthodox Jewish community in Chicago
- Erez Baver raised more than $10 million from investors
- SEC obtained a consent judgment against Zvi Feiner and FNR Healthcare, LLC
- Zvi Feiner operated a fraudulent investment scheme targeting the Orthodox Jewish community in Chicago
- Zvi Feiner raised more than $10 million from investors
- FNR Healthcare, LLC operated a fraudulent investment scheme targeting the Orthodox Jewish community in Chicago
- Erez Baver raised more than $10 million from investors
- SEC obtained a consent judgment against Zvi Feiner and FNR Healthcare, LLC
- Zvi Feiner operated fraudulent scheme targeting Orthodox Jewish community in Chicago
- Zvi Feiner raised more than $10 million
- FNR Healthcare, LLC operated fraudulent scheme targeting Orthodox Jewish community in Chicago
- Erez Baver partnered with Zvi Feiner
- SEC obtained consent judgment against Zvi Feiner and FNR Healthcare, LLC
- SEC filed complaint on September 19, 2019
- Zvi Feiner was charged with fraudulent scheme targeting Orthodox Jewish community
- FNR Healthcare, LLC was charged with fraudulent scheme targeting Orthodox Jewish community
- SEC settles with Zvi Feiner and FNR Healthcare, LLC
- SEC obtained consent judgment against Zvi Feiner and his company FNR Healthcare, LLC
- Feiner, FNR Healthcare, LLC, and Erez Baver raised more than $10 million
- The Securities and Exchange Commission has obtained a consent judgment
- The SEC's complaint filed on September 19, 2019
- Feiner, FNR, and Feiner's partner, Erez Baver raised more than $10 million
SEC Settles with Operators of Investment Scheme Targeting the Orthodox Jewish Community in Chicago Litigation Release No. 24848 / July 6, 2020 SEC v. Zvi Feiner, et al., No. 19-CV-06269 (N.D. Ill., Sept. 19, 2019) The Securities and Exchange Commission has obtained a consent judgment against Chicago resident Zvi Feiner and his company FNR Healthcare, LLC for operating a fraudulent scheme that targeted investors in the Orthodox Jewish community in the Chicago area. The SEC's complaint, filed on September 19, 2019, alleged that Feiner, FNR, and Feiner's partner, Erez Baver, raised more than $10 million from at least 62 investors to acquire nursing homes and assisted living facilities throughout the Midwest. According to the complaint, the defendants falsely told investors that the investments were low-risk and would generate high returns, and also misappropriated investor funds to pay distributions to earlier investors and for their personal use. The complaint also named Feiner's company Netzach Investments LLC and Baver's company Cedarbrook Management, Inc. as relief defendants for the purposes of recovering investor funds that those companies received from the fraud. On June 24, 2020, the U.S. District Court for the Northern District of Illinois entered a judgment that permanently enjoins Feiner and FNR from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, Feiner, FNR, and Netzach consented to entry of the judgment ordering them to pay disgorgement and prejudgment interest. Baver and Cedarbrook previously settled the SEC's charges by agreeing to permanent injunctive relief and to pay a total of $2,253,734 in disgorgement and prejudgment interest. The amounts of disgorgement and prejudgment interest to be paid by all defendants and relief defendants, together with the appropriateness and amounts of any civil penalties imposed against Feiner, FNR, and Baver, will be determined by the court upon motion by the SEC. Final Judgment
SEC Settles with Operators of Investment Scheme Targeting the Orthodox Jewish Community in Chicago Litigation Release No. 24848 / July 6, 2020 SEC v. Zvi Feiner, et al., No. 19-CV-06269 (N.D. Ill., Sept. 19, 2019) The Securities and Exchange Commission has obtained a consent judgment against Chicago resident Zvi Feiner and his company FNR Healthcare, LLC for operating a fraudulent scheme that targeted investors in the Orthodox Jewish community in the Chicago area. The SEC's complaint, filed on September 19, 2019, alleged that Feiner, FNR, and Feiner's partner, Erez Baver, raised more than $10 million from at least 62 investors to acquire nursing homes and assisted living facilities throughout the Midwest. According to the complaint, the defendants falsely told investors that the investments were low-risk and would generate high returns, and also misappropriated investor funds to pay distributions to earlier investors and for their personal use. The complaint also named Feiner's company Netzach Investments LLC and Baver's company Cedarbrook Management, Inc. as relief defendants for the purposes of recovering investor funds that those companies received from the fraud. On June 24, 2020, the U.S. District Court for the Northern District of Illinois entered a judgment that permanently enjoins Feiner and FNR from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the complaint, Feiner, FNR, and Netzach consented to entry of the judgment ordering them to pay disgorgement and prejudgment interest. Baver and Cedarbrook previously settled the SEC's charges by agreeing to permanent injunctive relief and to pay a total of $2,253,734 in disgorgement and prejudgment interest. The amounts of disgorgement and prejudgment interest to be paid by all defendants and relief defendants, together with the appropriateness and amounts of any civil penalties imposed against Feiner, FNR, and Baver, will be determined by the court upon motion by the SEC. Final Judgment