Specifically, in breach of fiduciary duties of loyalty and care owed by Leucadia to 352 Fund investors, Chirico was criminally charged for causing the 352 Fund and its affiliates to pour almost $100 million into an alleged Ponzi scheme masquerading as a water machine company called Water Station Management, LLC (“Water Station”). As the 352 Fund made those investments, Chirico purportedly had secret undisclosed financial stakes in the alleged Ponzi scheme conducted at the expense of the 352 Fund’s investors.
In addition, Chirico is being sued by the Securities and Exchange Commission for securities fraud and violations of the federal Investment Advisers Act for the same alleged misconduct.
Leucadia is in the process of winding down the 352 Fund after marking down the value of the Fund’s holdings in Water Station by 50%. The 352 Fund has not collected any interest on its Water Station holdings since June 2024, nor has it recovered any of its principal investment.
Did You Invest In The 3|5|2 Capital ABS Master Fund LP?
Silver Law Group is a leading investor rights firm representing investors in securities and investment fraud disputes nationwide. If you have any questions about the 352 Fund, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. All case evaluations are free. Contact us today at (800) 975-4345 and let us know how we can help.