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.
The SEC has also filed a lawsuit against Coggins and Coral Gables Asset Management LLC
Shortly after Silver Law Group previously blogged about Coggins’ alleged misconduct, the United States Securities and Exchange Commission (SEC) filed suit against Coggins and his companies alleging various violations of federal securities laws and seeking (1) to enjoin Coggins from continuing to engage in the alleged misconduct, (2) disgorgement of any ill-gotten gains from the alleged scheme, as well as (3) the levying of monetary penalties.
Consistent with the claims alleged in Silver Law Group’s pending cases, the SEC has alleged:
- Starting in 2015, Coggins, through Coral Gables Asset Management, solicited investors and raised at least $1.85 million . . . for a private fund that he controlled . . . Instead of placing the money in the Fund and investing it as represented, Coggins misappropriated more than $450,000 of investors’ funds and spent the money on BMW car payments, shopping, travel, expensive meals at restaurants, and his divorce attorneys.
- Coggins lied to investors about how well their investments were performing, the amount of assets he was managing, how he planned to invest the Fund’s assets, as his experience managing investments. He also created and sent fake audit opinions to third parties and investors and falsified brokerage records and investor account statements.
Hedge Fund Fraud Still A Major Issue
Hedge funds are complex investment vehicles that often employ complicated and sophisticated investment strategies that are difficult for main street investors to comprehend. Furthermore, hedge funds operate with minimal transparency, making it even more difficult for prospective investors to investigate and evaluate whether to invest. Thus, investing with hedge funds requires substantial due diligence, including reviewing audited financial data prepared by an independent auditor.
Did You Lose Money Investing With David Coggins Of Coral Gables Asset Management?
Before investing, it is important to ask questions, do diligent research, read recent reporting statements filed with the SEC or other regulators, and consult an expert if you are still unsure.
If you lost your investment in Coggins’ hedge fund, contact Silver Law Group for a confidential consultation. Silver Law Group has filed claims on behalf of Coggins’ investors and is continuing to investigate. We work on a contingency fee basis, meaning you won’t pay us any legal fees unless we are successful. Call us toll free at (800) 975-4345 or email firstname.lastname@example.org to get in touch.