Silver Law Group represents investors for losses in funds offered by SEC-registered investment advisor Indie Asset Partners, LLC (Indie Asset). Indie Asset is an Indiana-based investment adviser firm that, among other things, offers its clients a series of “house funds” managed by its affiliate: Indie Diversified Partners, LLC. Among others, these funds include:
- Indie Diversified Asset Fund (IDAF)
- Indie Diversified Absolute Return Fund (IDARF)
- Indie Diversified Income Fund (IDIF)
Indie Asset advertised a prudent investment model that included research and diversification to limit risks, but several of its funds invested a large percentage of Indie Asset clients’ portfolios in Prophecy Asset Management, L.P. (Prophecy). Unfortunately for investors, Prophecy is now embroiled in litigation and may have lost hundreds of millions of dollars that belonged to investors.
Indie Asset’s Funds Invested Customers’ Money With Prophecy, Which Is Now Facing Serious Financial Issues
Prophecy represented that, like Indie Asset, it conducted extensive research and spread investors’ funds across multiple, thoroughly-vetted sub-advisors who managed investors’ money. However, a books and records request filed in Delaware Chancery Court indicates that Prophecy’s sub-advisor selections have caused substantial problems for investors. Among other things, the Delaware litigation 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.
The Plaintiffs in this case are seeking to inspect Prophecy’s books and records to determine the full extent and magnitude of issues caused by Prophecy’s alleged misconduct.
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. Because Indie Asset’s funds were investing with Prophecy, investors in IDAF, IDARF, and IDIF may be entitled to recover of their losses.
Indie Asset has further indicated to investors that Prophecy is in litigation with sub-advisor Brian Kahn, who may have also lost substantial amounts of Propehcy’s money, and accordingly caused losses for Indie Asset investors.
Recovery Of Indie Asset Fund Losses
If the allegations in the Delaware action are true, Prophecy may have lost hundreds of millions of dollars for investors. This means that the Indie Asset funds, IDAF, IDARF, and IDIF, also suffered heavy losses.
Silver Law Group currently represents and is continuing to investigate claims on behalf of Indie Asset Partners investors who were improperly recommended IDAF, IDARF, and IDIF. Silver Law Group is experienced in representing investors in securities and investment fraud cases due to investment adviser conduct nationwide. If you or someone you know invested in any of Indie Asset Partners’ funds, please contact Silver Law Group toll free at (800) 975-4345 or email firstname.lastname@example.org for a confidential consultation.