Silver Law Group currently represents investors who invested in First Landing Fund, LLC and have suffered substantial losses as a result. First Landing, a “feeder fund” managed by Virginia-based Vantage Consulting Group, invested all of its capital with Prophecy Asset Management, which is facing serious financial issues and allegations of serious misconduct.
Silver Law Group recently filed a Complaint which alleges violations of federal securities laws against First Landing, Vantage, Prophecy, and others in the Southern District of New York. A copy of the Complaint can be found here.
First Landing allegedly had obligations to investigate, understand, and monitor Prophecy and the individuals it did business with before and continuously after First Landing solicited investor money to invest with Prophecy. If you invested in First Landing, you may be able to pursue recovery from First Landing for its misconduct.
Silver Law Group Has Filed Suit Against First Landing and Others
As alleged in the Complaint, Prophecy and First Landing are facing serious financial issues and allegations of misconduct. Among other things, the Complaint alleges:
- Investments in . . . the First Landing Fund began to unravel in 2019 when one of Prophecy’s subadvisors, Brenda Smith, was charged criminally and civilly with perpetrating a multi-million dollar Ponzi scheme.
- [A]round that same time, contrary to the diversified investment strategy Defendants touted, Prophecy began allocating a vast majority of the capital in its two funds to a single sub-advisor, Brian Khan, who lost a substantial, if not the entire, amount . . .
The misconduct alleged, according to the Complaint, constitutes violations of the Securities and Exchange Act as well as a breach of fiduciary duty and grossly negligent misrepresentation.
First Landing Employed A “Feeder Fund” Structure
First Landing is what is often referred to as a “feeder fund”, which is an investment fund formed solely for the purpose of investing all of its investible capital in another entity or fund. In First Landing’s case, it invested all of its capital in Prophecy Asset Management, L.P. Feeder funds owe investors certain obligations to investigate and monitor the underlying investments as well as to uphold promises and representations made when soliciting the investments in the first place.
Notably, First Landing recently filed a lawsuit against Prophecy in Delaware alleging, among other things:
- There is credible evidence to infer wrongdoing, mismanagement or breach of duty by Prophecy.
- Prophecy committed obvious violation of applicable risk and concentration limits.
Despite First Landing trying to point the finger at Prophecy, Silver Law Group has filed and is continuing to investigate viable claims for recovery of investment losses against First Landing.
Did You Suffer Financial Losses And Illiquidity Due To A First Landing Investment?
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 may incur substantial losses.
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 email@example.com or toll free at (800) 975-4345.