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.

If improper activity by Platinum Partners is proven, brokers and advisors who sold and recommended the Platinum Funds to investors may possibly be liable. If you were advised to invest in Platinum Partners funds by broker or investment adviser, and suffered significant losses are a result, you may be able to recover your losses in FINRA arbitration or in a lawsuit. 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.

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.

These investments included:

• Non-traded real estate investment trusts, or REITs
• Oil and gas partnerships
• Business development companies, or BDCs
• Hedge funds
• Managed futures
• Other illiquid pass-through investments

For many alternative investments, offering documents, state regulations and the firms themselves impose concentration limits. FINRA’s investigation found that LPL did not adequately supervise alternative investment sales from January 1, 2008 to July 1, 2012 and, as a result, these concentration limits were allegedly violated. In addition, LPL’s supervisory staff allegedly was not adequately trained in analyzing suitability standards.

According to stock fraud lawyers, firms have an obligation to properly supervise their brokers and fully disclose all the risks of a given investment when making recommendations. In addition, those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Securities fraud attorneys believe that many LPL customers may be able to recover losses for unsuitable alternative investments.

“In order to sell alternative investments, a broker-dealer must tailor its supervisory system to these products,” FINRA Executive Vice President and Chief of Enforcement Brad Bennett stated. “LPL exposed customers to unacceptable risks by not having an adequate system in place that could accurately review whether a transaction complies with suitability requirements imposed by the states, the product issuers and the firm itself — and it failed to train its registered representatives to apply all the suitability guidelines appropriately.”

If you were an LPL customer who received an unsuitable recommendation of non-traded REITs, oil and gas partnerships, managed futures, BDCs or other illiquid investments, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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.

According to investment fraud lawyers, the SEC announced on December 4, 2013 that it had filed a civil injunctive action for conducting illegal short sales in the securities of three companies — as well as insider trading in a different company — against Langston and his business entities. Allegations in the lawsuit include engaging in illegal short sales of equity securities prior to a public offering during a restricted period, the purchase of those same securities during the public offering and acquiring illegal profits of almost $200,000 gained by trading on inside information.

If you’ve suffered significant losses as a result of doing business with CRL Management LLC and/or Charles R. Langston III, 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 for a no-cost, confidential consultation.