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U.S. Securities and Exchange Commission


Litigation Release No. 23699 / December 5, 2016

Securities and Exchange Commission v. Levi Lindemann, Civil Action No. 0:14-cv-04834-PJS-JJK (D. Minn.)

U.S. v. Lindemann, No. 15-cr-350 (D. Minn.)

Levi Lindemann Sentenced to 74 Months in Prison and Ordered to Pay $1.9 million in Restitution

On November 22, 2016, U.S. District Judge Donovan Frank sentenced Levi Lindemann, who had previously been named a defendant in an SEC offering fraud action, to 74 months in prison and ordered him to pay $1.9 million in restitution to his victims. On March 1, 2016, Lindemann plead guilty to mail fraud and money laundering.

On November 24, 2014, the SEC filed an emergency action arising out the same facts that formed the basis of the criminal case. The SEC's complaint, filed in federal court in Minnesota, alleged that Lindemann, a former registered representative and resident of West Lakeland Minnesota, operated a fraudulent scheme through his private company, Gershwin Financial, Inc. and his sole proprietorship, Alternative Wealth Solutions. The SEC alleged that Lindemann told these investors that their money would be used to purchase a variety of purported investments including various notes and interests in a unit investment trust. The complaint alleged that in reality, none of these investments were ever made. The SEC's complaint charged Lindemann with violations 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.

After a hearing on November 24, 2014, the Honorable Patrick J. Schiltz of the United States District Court for the District of Minnesota imposed a preliminary injunction, and an asset freeze.

On March 3, 2016, without admitting or denying the allegations in the SEC's complaint, Lindemann consented to the entry of permanent injunctions against him. In addition, on April 22, 2016, the SEC issued an Order barring Lindemann from the securities industry. Lindemann consented to the Order without admitting or denying the Order's findings.



Modified: 12/05/2016