Hedge Fund Fraud Dedicated to Delivering Results

New York Based Hedge Fund Fraud Lawyers

Protecting the Rights & Interests of Investors Nationwide

Hedge funds have become increasingly popular in the world of investments. Despite their popularity, some hedge funds were involved in high-profile investment frauds and scandals. These cases were caused by the questionable business practices of investment firms, which undermine the safety of hedge funds. If you want to invest in hedge funds and plan to use the services of brokers or other investment specialists, proceed with caution. It is important to contact an experienced and trusted hedge fund fraud attorney to explore the specifics of your investment opportunity.

We can help investors who have been misled as a result of fraud. Call (877) 905-7671 to schedule your consultation.

Understanding Hedge Funds

Hedge funds pool money from accredited investors and then invest the money. These funds, however, are not subject to regulations that are designed to protect investors. In addition, hedge funds lend themselves to riskier and more flexible investments strategies, e.g., derivatives, short-selling, leverage, and other speculative investments. It is important to note that certain federal and state laws – concerning mutual funds – do not apply to hedge funds. For example, the SEC (U.S. Securities and Exchange Commission) states that hedge funds do not need to provide the same level of disclosure as mutual funds do. Without these disclosures, it is significantly more difficult than before to accurately evaluate the terms of a hedge fund investment or verify representations you will receive from it.

Common Examples of Hedge Fund Fraud

The main types of hedge fund fraud include:

  • insider trading
  • Ponzi schemes
  • misappropriation of investor funds
  • material misrepresentations to investors

These funds are liable for insider trading violations when securities are bought and sold in breach of a fiduciary duty, trust, or confidence. In addition, one can commit hedge fund fraud while selling or buying with nonpublic information about the security.

Misappropriation refers to the illegal use of funds of another person for personal and unauthorized purposes. The SEC defines Ponzi schemes as paying purported returns to existing investors with fund contributions from new investors. Ponzi scheme perpetrators typically solicit new investors by enticing them with high returns with little or no risk.

Issues with Hedge Funds – Lack of Oversight

Because hedge funds do not need to register with the SEC, fraudulent brokers can solicit significant initial investment sums from investors and take advantage of them through over-optimistic claims. Not all hedge funds, however, are investment scams. In fact, most of these funds are legitimate investment vehicles designed for risk-tolerant and sophisticated investors.

Feel free to schedule an appointment with Weltz Law by calling (877) 905-7671 or submitting this online form.

WHAT SETS US APART

Experienced & Effective
  • 30+ Years of Collective Experience

    Our attorneys have over 30 years of collective experience representing clients in all aspects of securities and commercial litigation.

  • Contingency Fees for Our Securities Law Clients

    We will not receive a penny in attorney's fees unless a positive recovery is obtained in your case. Contact us to see if you're eligible.

  • Free Consultations

    We will assess the merits of your claims and help you decide on the next step.

  • Litigated Claims in Excess of $50 Million for Our Clients

    Our firm is prepared to fight for you to seek maximum compensation.

Testimonials

Word From Former Clients
    Calmly walked me through the process.

    “Due to his hard work, the hearing lasted less than 30 minutes with the judge dismissing the complaint.”

    - L.K.
    Successfully represented me in a number of matters

    “Attentive to every aspect of my matters, always available to speak with me, gave me great advice and fought hard for me every step of the way.”

    - I.S.
    Truly terrific in every way.

    “He cared, he was responsive, and he guided me through a difficult time with compassion and expertise.”

    - F.S.
    I could not recommend him highly enough!

    “He was there to talk me through any questions and concerns I had until we decided on the best option for me.”

    - Securities Industry
    Smart, cost-efficient, and gets results.

    “My go-to lawyer for arbitration and regulatory matters for years.”

    - B.D.
/

contact us

Dedicated to Delivering Results Fill out the form below or call 877-905-7671 to schedule your free consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.