Scott Silver Interviewed About Lawsuits Against Miami Hedge Fund

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.

Silver Law Group Represents Coral Gables Asset Management Investors

Silver Law Group represents Coral Gables Asset Management investors in lawsuits to recover their money and continues to investigate the fund and its owner. Scott Silver told the South Florida Business Journal that Coggins “promoted the business as a successful hedge fund when in reality he was taking investor money and using it on personal expenses.”

One of our clients lost $150,000 to the fund. Upon receiving our client’s money “Coggins did not invest it through the fund, but in reality stole the money for himself,” said the complaint, filed on November 20, 2020 in U.S. District Court for the Southern District of Florida.

SEC Files Lawsuit

Shortly after Silver Law Group first blogged about Coggins and his alleged misconduct, in August, 2020, the Securities and Exchange Commission (SEC) filed an emergency action against him and his companies alleging violations of the federal securities laws and seeking penalties, the return of ill-gotten gains, and to prevent Coggins from continuing his misconduct.

The SEC’s claims are consistent with those alleged in Silver Law Group’s cases. Their complaint states that Coggins raised at least $1.85 million, misappropriated over $450,000 of investor’s funds, and “fabricated the audit reports that appear to be from Audit Firm 1, since the firm does not appear to exist.”

Did You Invest In A Fraudulent Miami Hedge Fund?

Hedge funds often use complex investment strategies that are difficult for average investors to understand. Given the minimal regulation and lack of full transparency, hedge fund fraud is a significant issue. With the large number of financial companies operating in South Florida, prospective investors may not know which are legitimate and which are run by con artists.

If you have investment losses with Coral Gables Asset Management, contact Silver Law Group for a no-cost confidential consultation. Silver Law Group has filed claims on behalf of Coggins’ investors. We work on a contingency fee basis, meaning nothing is owed unless we your money for you. Call us at (800) 975-4345 or email ssilver@silverlaw.com.