Summit Investment Management To Pay Investor $100K
A Financial Industry Regulatory Authority (FINRA) panel said that Summit Investment Management and portfolio manager, Thomas Carroll, must pay one firm client $100K for investing his money in funds from the investment manager, LJM Partners, which is no longer in operation.
The LJM Preservation and Growth Fund (LJMIX) has been named in numerous complaints since early last year when it suffered a huge plunge in value of over 80% in two days. This happened after the CBO Volatility Index experienced a spike.
The reason for the mutual fund’s vulnerability to such activity appears to be because it was using a strategy referred to as “shorting volatility” — an approach that LJM investors are now saying they were not apprised of.
LJM Preservation And Growth Fund: A Volatile Fall In Value
According to CityWireUSA, the LJM Preservation and Growth mutual fund, which has $805M in assets under management in late January 2018 had dropped to $9.8M within weeks by early March. This compelled LJM to liquate the fund and close up shop soon after.
Fund investors have since accused LJM of exposing them to incredibly high-risk investing rather than working to preserve capital. Claimants, including individual retail investors, high net worth individual investors, and even other RIAs that acted for investors, are now seeking millions of dollars for their losses.
Summit Investment, however, not only is one of those to have filed such as claim but also, it is the subject of this investor fraud claim that also names Carroll and alleges breach of fiduciary duty.
The claimant argued that the LJM Preservation Growth and the LJM Fund LP were unsuitable for him, especially considering that they are volatile investments and his risk-tolerance level was moderate. As a result of these investments, the claimant contends he sustained a loss of principal.
Thomas Carroll is also Summit Investment’s chief investment officer and vice-principal. Previously he was with Northwestern Mutual and subsidiary, Mason Street Advisors.
Investment Fraud Lawyers
Our investor fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) represent clients who lost money from investing in the LJM Preservation and Growth mutual fund or another LJM Fund offering that was recommended to them by the following and others:
- Summit Investment Management
- More Less Financial Solutions
- High Country Capital Management
- Personal CFO Solutions
If you invested in the LJM Preservation and Growth fund with any of the firms listed above or feel that you were a victim of investment fraud, contact us today so that we can help you determine whether you have grounds for a claim.