Update – US mutual fund LJM Preservation & Growth Fund (LJMIX) and fund manager LJM Partners LTD.
The White Law Group continues to investigate potential claims involving the US mutual fund LJM Preservation and Growth Fund – LJMIX – and fund manager LJM Partners LTD.
According to reports yesterday, Wells Fargo is suing LJM Partners LTD, a Chicago fund manager for $16.4 million for having allegedly missed required margin payments.
In a complaint filed in Manhattan federal court, the Wells Fargo said it sued LJM Partners Ltd. and its commodity pool after being required, in its role as clearing broker, to cover the company’s margin and losses with the Chicago Mercantile Exchange.
Wells Fargo said that LJM failed to make contractually required payments to cover the losses, asking the court to help it recover the money.
LJM Partners and an affiliate saw losses of 80 percent or more in the Feb. 5 stock market plunge. The company reportedly has told investors that they will return what is left of their money, but Wells Fargo says the company is likely insolvent. LJM managed close to a billion dollars earlier this year.
Last month we first told you about LJM investor Leonard Sokolow who filed a complaint in the US District of Chicago seeking class-action regarding his shares of the LJM Preservation and Growth Fund – LJMIX.
Recovery of Investment Losses
Broker dealers are required to perform adequate due diligence on all investment recommendations they make. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you have suffered investment losses with LJM Partners or LJM Preservation and Growth Fund, the securities attorneys at The White Law Group may be able to help you. Please contact The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.