Hedge Funds

Published on: October 13, 2016

Platinum Partners Hedge Funds Under Scrutiny

Platinum Partners LP Funds are under scrutiny after federal agents reportedly raided the funds’ New York offices in July 2016. Hedge fund entities sponsored by Platinum Partners include the Platinum Partners Value Arbitrage Funds, the Platinum Partners Credit Opportunities Fund, Platinum Credit Holdings LLC, Platinum Credit Management LP, Platinum Partners Value Corp., and Platinum Management (NY) LLC.

In June, the New York-based hedge fund manager reportedly began liquidating its funds, after the firm’s longtime associate Murray Huberfeld (Huberfeld) was accused of arranging for a $60,000 bribe and kickback, in a Salvatore Ferragamo bag, to Norman Seabrook, President of the New York correctional officers’ union. Seabrook allegedly directed $20 million in union investments into the Platinum Partners Value Arbitrage Fund. Seabrook has denied that he is guilty of any charges.

Later, Cayman Islands Judge Andrew Jones reportedly ordered that a new advisor take control of the international arm of Platinum’s flagship fund, which is based in the Caymans, after an investor claimed he has not been able to gain access to his money since 2015.

Published on: June 3, 2014

Supervisory Failure Leaves LPL Financial with Heavy Fines

by InvestorLawyers

Investor lawyers say the Financial Industry Regulatory Authority (FINRA) found supervisory deficiencies related to investment concentration at leading independent broker-dealer LPL Finanical. As a result of alleged unsuitable recommendations, FINRA has announced a penalty in the form of a $950,000 against LPL Financial.

Supervisory Failure Leaves LPL Financial with Heavy Fines

Alternative investments can include a variety of products, including oil and gas partnerships, hedge funds, non-traded real estate investment trusts (REITs), business development companies (BDCs) and other related categories. Though LPL Financial set forth guidelines to manage investment concentration, FINRA reports that from January 2008 until July 2012, there was no internal effort to enforce these guidelines. As a result, some clients may have received investment advice that resulted in levels of concentration that were excessive.

If you suffered significant losses as a result of an unsuitable recommendation to purchase or over-concentrate your portfolio in non-conventional investments (whether from LPL or another stockbroker or financial advisor), you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

Published on: April 1, 2014

Unsuitable Alternative Investment Sales: LPL Customers Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are investigating claims on behalf of customers of LPL Financial LLC. This move comes on the heels of an announcement on March 24, 2014 from the Financial Industry Regulatory Authority (FINRA) which stated that the firm had been fined $950,000 for supervisory failures related to alternative investment sales.

Unsuitable Alternative Investment Sales: LPL Customers Could Recover Losses

These investments included:

Non-traded real estate investment trusts, or REITs

Published on: December 16, 2013

CRL Management, Charles R. Langston III Investors Could Recover Losses

by InvestorLawyers

Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with CRL Management LLC and Charles R. Langston III. Langston, a hedge fund manager, conducts business with Miami-based CRL Management. In October, a lawsuit was filed against both he and the firm, alleging fraudulent solicitation of more than $14 million in investor funds.

CRL Management Charles R. Langston III Investors Could Recover Losses

Allegedly, Langston made material misrepresentations about the nature of the fees, commissions and/or investments. Furthermore, he allegedly claimed that he would invest several million dollars of personal funds in an investment vehicle. According to the claim, CRL Management and Langston misrepresented an investment vehicle they were promoting. In addition, it was allegedly not registered with the Securities and Exchange Commission.

Securities arbitration lawyers say that as a result of the actions of CRL Management and Langston, one investor lost more than $3.5 million. In addition, it cost the investor more than $1 million in commissions and fees. Furthermore, a recent arbitration award from the Financial Industry Regulatory Authority ordered CRL Management to pay $1,312,949.31 for breach of contract.