Adam Kaplan, a former financial advisor, is embroiled in a complex legal battle involving allegations of fraud, money laundering, and obstruction of justice. These charges have evolved over time, painting a troubling picture of misconduct within the financial advisory sector. Kaplan, 35, allegedly instructed a co-conspirator to threaten and physically assault victims of the alleged advisory fraud scheme.
Initial Allegations and Indictment
In July 2023, a 16-count indictment was unsealed in the Eastern District of New York, charging Adam Kaplan and his twin brother, Daniel Kaplan, with conspiracy to commit wire fraud, wire fraud, investment advisor fraud, and money laundering. The indictment alleges that between May 2018 and November 2022, the Kaplans defrauded at least 50 clients, many of whom were elderly or disabled, out of more than $5 million.
The brothers purportedly overbilled clients for advisory fees by inflating agreed-upon percentages without clients’ knowledge or consent. They also allegedly misappropriated funds through unauthorized charges on clients’ credit cards and bank accounts, using the money for personal expenses and to repay clients who questioned unusual account activities.
Employment History
Both Adam Kaplan and Daniel Kaplan had brief tenures at major financial institutions. They were registered with Morgan Stanley and Merrill Lynch for less than a year between 2016 and 2018. Subsequently, they joined IHT Wealth Management in 2018, where they remained until their termination in 2021. Their departure from Morgan Stanley was reportedly due to “conduct involving utilizing client logon credentials to access client accounts.”
SEC Civil Charges
In March 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against the Kaplan brothers, accusing them of misappropriating over $5 million from at least 60 clients. The SEC’s complaint mirrors the criminal allegations, highlighting fraudulent overbilling and unauthorized charges. The SEC seeks injunctions, disgorgement of ill-gotten gains, and civil penalties.
Additional Charges and Obstruction Allegations
The case took a more severe turn in February 2025 when U.S. prosecutors filed a superseding indictment against Adam Kaplan. The new charges include attempted obstruction of justice, witness tampering, and bribery of law enforcement officials. Prosecutors allege that between April 2023 and September 2024, Kaplan attempted to impede the investigation by destroying evidence, threatening witnesses, and offering bribes. While out on a multimillion-dollar bond, he allegedly continued fraudulent activities, used burner phones and aliases to avoid detection, and attempted to hack into others’ email accounts.
One particularly egregious allegation involves Kaplan instructing an associate to intimidate a victim, suggesting the individual should be “peeing blood/missing teeth.” He also attempted to fabricate evidence to support his defense. These actions led to the revocation of his bail and further complicated his legal standing.
Current Status
As of March 2025, Adam Kaplan remains in custody, awaiting trial on multiple charges that could result in significant prison time if convicted. The case underscores the critical importance of ethical conduct in financial advisory roles and the severe consequences of violating client trust and legal statutes.
