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Private Equity Fund Fraud and How Our Experienced Brokerage Firm Arbitration Lawyers Can Help 

What Is A Private Equity Fund? 

These are investment vehicles in which investors’ funds are pooled together and used by the fund to make investments. Private equity funds are closed-end funds and they are not listed on public exchanges. Often, a private equity fund will take a controlling interest in a company or a business that becomes what is called a “portfolio company” for the fund. The private equity fund then actively manages this enterprise in order to enhance its value.

Should You Sue Your Broker-Dealer Over Your Investor Losses From Morgan Stanley’s Covered Call Options Strategy?

Broker-Dealer Ordered To Pay$11.5M After Losing FINRA Lawsuit

A Financial Industry Regulatory Authority (FINRA lawsuit) arbitration panel has ordered Morgan Stanley to pay one investor $11.5M in damages over losses sustained by using a covered call options strategy. The panel’s ruling also awarded the claimant $157,656.81 in costs and $400 in arbitration fees.

Reg D Securities Losses Can Be Caused by Broker Negligence

Our Brokerage Firm Arbitration Lawyers Are Investigating Herbert J. Sims (HJ Sims) After Regulation D Offerings Fail

Regulation D (Reg D) private placements are private securities offerings. These alternative investments are risky, often illiquid investments and exempt from having to  register with the US Securities and Exchange Commission (SEC). Reg D offerings are primarily suitable for sophisticated, high-net-worth individual investors and institutional clients.

Northstar Financial Services (Bermuda) Investors Receive New Liquidation Update

On November 15, 2022, Northstar (Bermuda) policyholders were sent an update regarding the liquidation proceedings involving the offshore company, which filed for bankruptcy in December 2020. Many investors are still struggling to recoup their losses.

The letter stated that the Joint Provisional Liquidators (JPLs) are continuing to look into “loan assets and settlements of loan/preferred equity in affiliated entities,” and also at “assets and potential claims” against US-based parties. The JPLs have needed more time to investigate Northstar Financial Services (Bermuda)’s financial affairs.

 Alleged Unsuitability and Due Diligence Failures May Be Grounds for a FINRA Lawsuit

If you are someone whose financial advisor recommended one of the TCA Global Credit Funds to you, there may be reasons to sue your broker-dealer for damages. In 2020, TCA Fund Management Group Corp. and key executives were accused of securities fraud, including allegedly fraudulently inflating the net asset values and performance outcomes of a number of its funds. This purportedly led to hundreds of investors being defrauded while leaving its funds, which allegedly falsely held about $516M, in serious trouble. Affiliated company TCA Global Credit Fund GP Ltd. also was accused of investor fraud.

Shepherd Smith Edwards and Kantas (investorlawyers.com) are working with a number of TCA Global Fund investors to determine whether they have grounds for a FINRA lawsuit. Unfortunately, it appears that alleged due diligence failures, unsuitability, misrepresentations and omissions, and broker negligence may have been factors when certain brokers marketed and sold one of these TCA Funds to customers:

Did You Suffer Investor Losses While Working With Ex-Network 1 Financial Securities Broker Charles Malico? 

Customers Accuse New York Financial Advisor of Broker Misconduct

In the Financial Industry Regulatory Authority’s (FINRA’s) first disciplinary action related to Regulation Best Interest, the SRO has imposed a $5K fine and six-month suspension against former Network 1 Financial Securities financial advisor Charles Vincent Malico in Huntington Station, New York. This is not the first time that Malico has been accused of broker negligence, churning, or misconduct.