Brokerage Investment Fraud
A hedge fund is a type of investment that is typically regulated less than other types of funds and usually pays a performance fee to the fund manager. Hedge funds can involve a wide variety of investments, including stocks, commodities, debt and many others. Investment in hedge funds is limited by regulators to high net worth, sophisticated investors.
Hedge funds traditionally have been known for using certain investment techniques as a way to protect against some of the risk. The comparative lack of regulation on hedge funds, however, gives the fund manager the freedom to handle the fund in a way that maximizes his or her performance fee rather than serving the investors’ best interests. Short sales, the use of excessive leverage and derivatives, and other practices common to hedge funds can be used in a way that puts the investor at serious risk.
Dedicated Florida Hedge Fund Attorneys
Hedge funds are often misrepresented as safe investments. Investors may be told that a particular investment strategy was going to be used and then a completely different one has been put into action. There have been some hedge funds that have later been shown to be feeder funds for Ponzi schemes.
The lawyers at the law firm of Sonn | Erez work diligently to hold brokers, fund managers and their firms accountable when investment misrepresentation and irresponsible conduct cause investors to lose money. Just because a person meets the criteria to invest in a hedge fund doesn’t mean that it is the right option. Recommending unsuitable investments is a violation of FINRA rules and we will fight to see that the responsible parties are held accountable.
Call for a Free Consultation
Contact our office today to discuss your hedge funds case. You can reach us by phone at 844-689-5754 or via e-mail. We take every case on a contingency basis, which means we don’t collect a fee unless we make a financial recovery for you.*
Under Florida Bar rules, we are not able to discuss our past results on this website. If you would like to learn more about our previous cases, please contact us for additional information.
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*Client will be responsible for costs and expenses.