On April 11, 2021, Silver Law Group filed a Complaint in the Southern District of New York against two Prophecy investment funds, First Landing Fund, LLC, Jeffrey Spotts, and several other Defendants to recover millions in losses suffered by an investor. The lawsuit alleges violations of federal securities laws, breach of fiduciary duty, and grossly negligent misrepresentation.
Investors across the United States and potentially internationally are beginning to realize their investments in First Landing Fund, LLC and/or Prophecy Special Opportunities Fund, LP may have been decimated by the misconduct alleged in the Complaint. Silver Law Group is continuing to investigate these claims on behalf of other investors.
The Complaint Alleges Misrepresentations And Mismanagement Led To Hundreds Of Millions Lost
At the core of the allegations is Prophecy Special Opportunities Fund, LP, which is managed by Defendant Prophecy Special Ops GP, LLC and Jeffrey Spotts. According to the Complaint, Spotts and some other Defendants represented to investors that they would diversify investments and monitor risk, but instead, according to the Complaint:
- Defendants “plac[ed] investments with sub-advisor Brenda Smith, who was charged criminally by the Department of Justice and civilly by the Securities and Exchange Commission for operating a $68 million Ponzi scheme”
- Defendants “invest[ed] all or nearly all of investor funds with a single sub-advisor, Brian Kahn, who purportedly lost hundreds of millions of dollars.”
The Securities Lawsuit Focuses On First Landing Fund, A Feeder Fund For Prophecy
The issues uncovered about Prophecy are compounded by alleged issues with First Landing Fund, LLC, a “feeder fund” that invested all or nearly all of its capital with Prophecy. According to the Complaint, First Landing took responsibility for certain risk management and oversight of Prophecy’s activities, but allegedly failed to uphold many of the representations it made in offering documents and marketing materials distributed to investors, amongst other allegations.
Because First Landing’s performance was tied to Prophecy’s performance, when Prophecy unraveled over the course of 2019-2020, so did First Landing. Investors in both funds are now facing major losses and illiquidity.
Silver Law Group Specializes In Representing Victims Of Investment Fraud
Silver Law Group is experienced in representing investors who suffered losses due to fund mismanagement, fraud, and other misconduct. Silver Law Group represents investors in securities and investment fraud cases nationwide. Many cases are handled on a contingency fee basis, meaning you won’t owe us until we recover money for you.
In addition to direct claims against First Landing and Prophecy, Silver Law Group’s investigation uncovered that an Indianapolis-based investment advisor, Indie Asset Partners, recommended Prophecy and First Landing to many of its clients, and Silver Law Group is currently pursuing separate claims against Indie Asset for recovery as well.
Did You Invest In Prophecy And/Or First Landing Fund?
Prophecy and First Landing have provided very little information to investors regarding the status of their investments, but Silver Law Group’s investigation has uncovered that investors are likely to incur substantial losses. If you invested in Prophecy and/or First Landing Fund, contact Silver Law Group at (800) 975-4345 or email email@example.com for a confidential consultation.