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Articles Posted in Hedge Funds

Scott Silver, Silver Law Group’s managing partner, was interviewed by the South Florida Business Journal about the lawsuits his firm has filed on behalf of investors in Coral Gables Asset Management, a Miami hedge fund owned by David Coggins that he is alleged to have misappropriated money from. David Coggins told investors and potential investors that he had a successful hedge fund. He backed up his claims with independent auditors reports that showed millions in assets under management and a record of consistently outperforming the market. Now Coggins’ statements are alleged to have been false and misleading, and it appears that he spent hundreds of thousands of investor dollars on BMW car payments, shopping, travel, and his divorce attorney.Scott Silver, Silver Law Group’s managing partner, was interviewed by the South Florida Business Journal about the lawsuits his firm has filed on behalf of investors in Coral Gables Asset Management, a Miami hedge fund owned by David Coggins that he is alleged to have misappropriated money from. Continue reading ›

Miami-Based David Coggins Accused of Perpetrating Alleged Securities Fraud  Silver Law Group is continuing to investigate and has now filed several lawsuits on behalf of victims of an alleged hedge fund fraud perpetrated by David Coggins, who investors claim operated a bogus hedge fund named Coral Gables Capital, LP and/or Coral Gables Asset Holdings, LP. Coggins managed these “funds” through his company Coral Gables Asset Management, LLC.  Coggins has spent the last few years soliciting investments for his hedge fund, which investors now contend was a total fraud through which Coggins stole investors’ funds.  Among other things, in Silver Law Group’s pending cases, investors have alleged:  Coggins contacted prospective investors by sharing fake marketing materials and performance data which made Coggins’ fund, Coral Gables Capital and/or Coral Gables Asset Holdings, seem as if it was generating substantial returns over the past few years. Coggins even created fake audit reports and a compliance manual intended to dupe investors into believing they were dealing with a legitimate, established hedge fund with millions in assets under management.Miami-Based David Coggins Accused of Perpetrating Alleged Securities Fraud

Silver Law Group is continuing to investigate and has now filed several lawsuits on behalf of victims of an alleged hedge fund fraud perpetrated by David Coggins, who investors claim operated a bogus hedge fund named Coral Gables Capital, LP and/or Coral Gables Asset Holdings, LP. Coggins managed these “funds” through his company Coral Gables Asset Management, LLC. Continue reading ›

Silver Law Group represents an investor in potential claims against David Coggins and his Miami-based hedge fund Coral Gables Capital, LP, which Coggins manages through his company Coral Gables Asset Management, LLC.  Over the past several years, Coggins has solicited investors for his purported hedge fund. Silver Law Group’s client alleges that the hedge fund was a fraud and that Coggins allegedly used the money for unauthorized purposes.Silver Law Group represents an investor in potential claims against David Coggins and his Miami-based hedge fund Coral Gables Capital, LP, which Coggins manages through his company Coral Gables Asset Management, LLC.

Over the past several years, Coggins has solicited investors for his purported hedge fund. Silver Law Group’s client alleges that the hedge fund was a fraud and that Coggins allegedly used the money for unauthorized purposes. Continue reading ›

TCA Management Group, a South Florida-based hedge fund and business lender, is shutting down its main investment fund, stating that clients have asked for more cash than is available. The announcement comes after TCA employees filed an SEC whistleblower complaint alleging that the TCA Fund Management Group’s Global Credit Master Fund, which lends money to distressed companies, has inflated the hedge fund’s earnings and assets since 2017. The Securities and Exchange Commission (SEC) is investigating the company’s accounting practices.TCA Management Group, a South Florida-based hedge fund and business lender, is shutting down its main investment fund, stating that clients have asked for more cash than is available.

The announcement comes after TCA employees filed an SEC whistleblower complaint alleging that the TCA Fund Management Group’s Global Credit Master Fund, which lends money to distressed companies, has inflated the hedge fund’s earnings and assets since 2017. Continue reading ›

Suhail Saleem Khan (CRD #3168241) is a former registered broker and investment advisor who was last employed with LPL Financial LLC (CRD #6413) of Chicago, IL. His previous employers include Vision (CRD #47927) and U.S. Financial Investments, Inc. (CRD #120804), also of Chicago. No current employment information is available. He began in the industry in 1999.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224Khan was barred by FINRA after he refused to answer a request for information from them. He was barred in all capacities, and from associating with a FINRA member in any capacity, effective 11/17/2017. Khan did not request a termination of his suspension within 3 months, so he was indefinitely barred from the industry, and remains so to this day.

On 5/25/2018, a customer filed a dispute alleging that from 2013 through 2017, Khan made “unsuitable, speculative investments” in his own hedge fund business, as well as one REIT and an oil & gas business. The customer also alleged that some of the investments contained unregistered securities, and has requested damages of $775,000.00. The case is currently listed as “pending.”

Michael Turner Morrissett (CRD #1456789) is a registered broker and investment advisor who is currently employed with Wells Fargo Clearing Services, LLC (CRD #19616) of Roanoke, VA. His previous employers are First Union Brokerage Services, Inc. (CRD #8112) of Charlotte, NC and Dominion Investment Banking, Inc. (CRD #17523)   He has been in the industry since 1986.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-1024x683-300x200Morrissett is the subject of four disclosures, the most recent of which was filed on 4/5/2018. The claimants allege that Morrissett “misrepresented” two hedge funds in 2013 and 2015, and that the information provided on the two alternative investments was “misleading.” The clients have requested damages of $2,300,000. This case is currently pending.

The next customer dispute was filed on 1/15/2014, with the client alleging that Morrissett “pursued an unsuitable investment strategy beginning in 2000 that overexposed her account to the volatility of the equities markets during the global financial crisis of 2008 and 2009.”  The case was settled for $85,000 by the firm to avoid the expense and hassle of litigation.

Investment Center Broker Accused of Stealing $300K from Elderly Client on silverlaw.comLeon Vaccarelli allegedly defrauded a total of nine clients out of more than $1 million

In May, former financial advisor Leon Vaccarelli was charged with 12 counts of fraud and money laundering in a federal court in Connecticut. If convicted on all of them, he could receive a maximum penalty of 210 years in prison. After pleading not guilty, Vaccarelli was released on a $100,000 bond.

Vaccarelli is alleged to have stolen money from several clients between 2011 and 2017. During that time, he reportedly informed his clients that their money would be invested in different places, including money market accounts and retirement products. What Vaccarelli actually did, according to investigators, was put the money into his own account and use it to pay his own expenses. In addition, federal prosecutors also say that he also used client money to make interest payments to other investors.

Securities Arbitration Claims Against National Securities Corp. on silverlaw.comAccording to some reports, nearly 1/3 of National Securities brokers have had regulatory issues, legal disputes, or personal financial problems that have been disclosed to investors

National Securities Corporation is one of the oldest financial firms in the U.S., dating back over 70 years. Its the main office is in Seattle, Washington, but the company has licenses to operate in every state in the country, as well as the District of Columbia, Puerto Rico, and the Virgin Islands.

National Securities Corporation is registered with the SEC and three self-regulatory organizations: Nasdaq, Cboe BZX Exchanged, Inc., and the Financial Industry Regulatory Authority (FINRA) – and it is with the latter agency that the company has come under intense scrutiny over the last couple of decades.

SEC Charges Texas Pastor and Former Louisiana Broker with Money Laundering and Wire Fraud on silverlaw.comThe elder financial fraud allegations reportedly cost elderly investors over $1M of retirement savings

Once a prominent Methodist pastor in Houston, Texas, Kirbyjon Caldwell is now charged by the SEC with numerous counts of money laundering and wire fraud. The charges are directly related to a scheme Caldwell and his partner, Gregory Alan Smith – a self-proclaimed financial advisor who was also charged – allegedly used to defraud elderly investors by selling them an interest in defunct, pre-Revolutionary Chinese bonds.

It is alleged that in 2013 and 2014, Caldwell and Smith singled out vulnerable investors to invest in bonds that had no more value than being collectible memorabilia – promising instead that they were worth millions.

The U.S. Securities and Exchange Commission (“SEC”) has formed a new group to increase oversight of private equity and hedge funds.  The SEC has assigned two former industry veterans to oversee the unit.  The SEC frequently creates these units when it sees increased activity in a particular type of investment product or is concerned that a particular segment of the securities industry may be violating the federal securities laws.  Over the last decade, alternative investments such as private equity and hedge funds have become very popular, and sales of these types of funds have expanded from the institutional level to the retail investor level.

The SEC’s 2014 Compliance Outreach Program focused on alternative investments such as hedge funds.   Private funds run by private equity firms, hedge funds, venture capital funds and other alternative investments have been the subject of heightened scrutiny during the last several years, furthered by the creation of the Dodd-Frank Wall Street Reform and Consumer Protection Act in the wake of the financial crisis.

At the 2014 SEC Compliance Outreach Program, the SEC brought attention to a number of concerns it has relating to private equity.  Among the SEC’s rising concerns in this area are vague limited partnership agreements and poor disclosure practices to limited partnerships at private equity funds, the shifting of fees and expenses at those funds, and misleading performance and valuation metrics at private equity firms and hedge funds.

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