Have you suffered losses investing in Prestige Wealth? If so, the securities attorneys of The White Law Group may be able to help.
The Financial Industry Regulatory Authority (FINRA) recently announced that it has barred two Buffalo, New York-based brokers from the securities industry for fraud in connection with the sale of a hedge fund, the Prestige Wealth Management Fund LP.
According to reports, the brokers’ alleged misconduct occurred while they were employed with Mid Atlantic Capital Corp, a FINRA registered brokerage firm.
FINRA’s investigation found that Timothy S. Dembski and Walter F. Grenda allegedly made material misrepresentations and omissions to lead investors to believe that the hedge fund was a “growth” fund that would be based on a computer algorithm that automatically included risk protections and stop-losses to limit losses in the fund.
However, FINRA further stated that the fund purportedly “was a highly speculative investment, the fund’s chief investment officer had complete control over the investments made, and it was not obligated to follow the computer algorithm.” In the last full month that the fund traded, it apparently lost over 80% of its value.
FINRA also alleged that when marketing the hedge fund, Dembski and Grenda distributed a private placement memorandum (PPM) that they knew contained material misrepresentations about the chief investment officer’s professional experience.
The PPM for Prestige Wealth Management apparently stated that the chief investment officer had “worked in the financial services industry for over 14 years,” “co-managed a portfolio of over $500 million” and was a “vice president of investments for a New York based investment company,” all of which were allegedly false according to FINRA.
The report indicates that in settling this matter and agreeing to the FINRA sanctions, Dembski and Grenda neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
The White Law Group is investigating the liability that Mid Atlantic may have for failure to supervise Dembski and Grenda. FINRA brokerage firms are required to properly supervise their agents and to ensure that they are complying with FINRA rules. If it can be established that a brokerage firm failed to properly supervise one of its agents, the firm can be held liable for losses in a FINRA arbitration claim.
If you suffered losses investing in Prestige Wealth Management and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.
For more information on the firm and its securities practice, visit https://www.whitesecuritieslaw.com.