Hatteras Core Alternative Funds And Investor Losses
Our Alternative Investment Loss Attorneys Are Investigating For Broker-Dealer Negligence
Shepherd Smith Edwards and Kantas Alternative Investment Loss Attorneys (investorlawyers.com) are continuing to investigate the brokerage firms and their registered representatives that may have unsuitably recommended Hatteras Investment Partners Funds to customers. In particular, these investments include:
- Hatteras Core Alternatives Fund
- Hatteras Core Alternatives TEI Fund
- Hatteras Core Alternatives TEI Institutional Fund
- Hatteras Core Institutional Fund
There is concern regarding allegations that Hatteras investors lost up to 95% of their principal investment after Hatteras sold the Funds to The Beneficient Company Group a few years ago. Beneficient is also connected to GWG Holdings, which is accused of running a more than $1.6 Ponzi scam.
Earlier this year, a class action securities lawsuit was filed accusing Hatteras directors of breaching their fiduciary duty when they sold the Hatteras Funds to Beneficient without notifying investors, giving them a vote on this decision, or offering them a chance to redeem their investments. The lead plaintiffs of that case are two Hatteras Funds investors.
Once holding $1.5B assets under management, Hatteras used to allow investors to have quarterly tender offers. However, by 2021, assets under management had gone down to about $400K. The Hatteras Board approved a liquidation plan that included trading what was left in the funds for Beneficient preferred shares of equal value.
When Beneficient merged with Avalon Acquisitions in June 2023, the Hatteras preferred shares were converted to Class A common stock valued at $8/share. Then, the stock dropped to $.08/share, causing Hatteras investors to lose practically all of the money they invested.
How Can Our Hatteras Alternative Investment Loss Attorneys Help?
We represent clients who had sustained losses because their financial advisor made an unsuitable investment recommendation, failed to fully apprise them of the risks, and did not conduct the proper due diligence so they could tell when an investment had gone sour and it was time to get out or was negligent or behaved badly in other ways.
Even when there is a class action lawsuit involved, our securities attorneys have found that if you want to maximize your chances for a full recovery you need to explore your legal options and determine whether you have grounds for filing your own claim. Going after your broker-dealer for financial advisor fraud or negligence is not something you want to do without savvy securities attorneys representing you.
Already, we are working with many investors who sustained losses in GWG, an alternative asset firm of which Beneficient CEO Brad Heppner used to be CEO. Heppner is accused of running the alleged GWG Ponzi scam in which the proceeds from GWG L Bond sales were purportedly redirected to Beneficient without investors’ knowledge or consent.
Shepherd Smith Edwards and Kantas Alternative Investment Loss Attorneys have been investigating what happened, and the role brokers, who earned high commissions from selling L Bonds, played.
When you work with us, you are retaining seasoned alternative investment fraud lawyers who know how to hold financial advisors liable for their actions that contributed to your investor losses. More than 90% percent of our clients have received full or partial financial recovery.
Contact Us:
Call our Alternative Investment Loss Attorneys at (800) 259-9010 or fill out this form.