Securities management firms and hedge funds in Michigan may be accused of committing securities fraud. These charges may be in the form of management securities fraud and the courts may classify them as civil cases. This is true for a certain securities management firm in West Michigan, which is alleged to have committed securities fraud.
According to West Michigan Newschannel 3, the firm is alleged to have bought securities that may have been part of a Ponzi scheme. Investors who may have given money to the firm are now seeking unspecified restitution amounts for alleged financial damages. The investors have since filed a civil lawsuit against the management securities firm. Colorado’s Attorney General may have also filed an additional suit against the firm. The Attorney General accuses the firm of allegedly handling the sale of securities to investors in West Michigan. According to the Attorney General, these securities were unregistered and may have been the first step in the development of a Ponzi scheme. The firm allegedly re-invested the proceeds from these sales into a larger Ponzi scheme. Three people who allegedly operated the larger Ponzi scheme have since been handed jail terms.
According to the lawsuit, the firm’s alleged performance charge on its investors may have been part of an elaborate scam. The fraud allegedly ran for a couple of years. The firm’s managers are allegedly not named in the lawsuit. The firm may have recovered some of the lost funds when authorities raised queries on the nature of the transactions.
People accused of securities fraud may choose to contact an attorney. This action may help them understand the securities litigation process in Michigan.