The U.S. Securities and Exchange Commission recently accused an investment group and its manager for fraudulently raising tens of millions of dollars from investors. The manager is facing multiple securities fraud charges, including violating federal securities laws. Finding the right representation in Puerto Rico may be a priority for investors as these actions allegedly took place outside of New York, primarily in Puerto Rico and another state.
The SEC’s complaint asserts that the investment group’s manager started his fraudulent activities back in 2013, and continued up through 2020. Around 30 investors reportedly put a total of $39 million into what they thought was a legitimate investment opportunity. It was purportedly a fraudulently run hedge fund using a sub-fund structure, which he used to raise the funds for other purposes.
The manager told investors that the firm invested their funds only in financial products listed in the United States. Instead, he apparently invested a sizable chunk of the investment assets into his own private company. He is also accused of misappropriating about $6.3 million for personal expenses, paying off a relative’s mortgage and additional business ventures. He also allegedly purchased three separate luxury apartments with misappropriated funds.
When New Yorkers make investments they are thinking about more than just the here and now — they are thinking about their futures. No one really expects for that investment in the future to disappear in an act of securities fraud. Recovering those lost assets often becomes a priority, and speaking with an attorney who can provide representation in Puerto Rico is often a good place to start.