Silver Law Group is representing investors who suffered losses after investing in First Landing Fund, LLC (First Landing). First Landing is an investment fund formed in 2015 and is managed by Vantage Consulting Group, Inc., a Virginia-based SEC-registered investment adviser firm.
First Landing is what is commonly referred to as a “feeder fund” – a fund formed solely for the purpose of investing all of its investible capital in another entity or fund. In First Landing’s case, First Landing invested all of its capital with Prophecy Asset Management, L.P. (“Prophecy”), which is facing serious financial issues and allegations of serious misconduct.
First Landing Fund Is Now Suing Prophecy To Inspect Prophecy’s Books And Records
The performance of any investment in First Landing is 100% tied to the performance of Prophecy. Unfortunately, due to serious issues at Prophecy, First Landing investors now fear loss of virtually all of their principal investment and are suffering from the illiquidity of the fund, which renders investors “stuck” with their investment in First Landing and unable to redeem or liquidate their shares.
Prophecy advertised that it would spread investors money across multiple diligently-research sub-advisors who would in turn manage funds in a prudent manner. Unfortunately, serious allegations against Prophecy have revealed that Prophecy may not have kept its promises. A books and records request filed by First Landing in Delaware Chancery Court brings to light serious potential issues with Prophecy’s investments. Among other things, First Landing alleges:
- Prophecy has kept limited partners in the dark as a series of distressing developments has mounted.
- There is credible evidence to infer wrongdoing, mismanagement or breach of duty by Prophecy.
- Prophecy committed obvious violation of applicable risk and concentration limits.
First Landing is seeking to inspect Prophecy’s books and records to learn more about these issues.
These issues raised in the Delaware action stem from Prophecy directing millions of dollars of investor funds to several problematic sub-advisors. One is Brenda Smith, who has been sued by the Securities and Exchange Commission for perpetrating multi-million-dollar Ponzi scheme. Another is Brian Kahn, who Silver Law Group’s investigation has revealed may have lost millions in investors’ money through First Landing.
First Landing May Be Liable For Investor Losses
Despite the fact that First Landing appears to be blaming Prophecy for these issues, First Landing had obligations of its own to conduct due diligence, investigate, and understand Prophecy and the individuals First Landing did business with before and continuously as First Landing solicited funds to be invested with Prophecy. If you invested in First Landing, you may be able to pursue recovery from First Landing for potential misconduct.
Did You Suffer Financial Losses And Illiquidity Due To A First Landing Investment?
Investors in First Landing may have viable claims against First Landing, the broker or investment adviser that recommended First Landing, and/or third parties that assisted First Landing and/or Prophecy in potential misconduct.
Silver Law Group is experienced in representing investors in securities and investment fraud cases nationwide. Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and has extensive experience representing investors in securities and investment fraud cases. Please contact us for a confidential consultation at firstname.lastname@example.org or toll free at (800) 975-4345.