Category Archives: Hedge Funds

FSC Securities Hit with $1.28M Award For Aubrey Lee Price Ponzi Scheme

Aubrey FSC brokerAugust 11, 2015 -Atlanta, Georgia

An arbitration panel of the Financial Industry Regulatory Authority (FINRA) awarded $1.28 million to a group of individuals who were victims of a ponzi scheme conducted by Aubrey Lee Price, a former FSC Securities broker. FINRA Case# 14-02355.

Price , who went from devout Christian minister and trusted financial adviser, was registered with FSC Securities in McDonough, GA,  from 2006-2008. He made headlines when, after his scheme was uncovered,  he faked his suicide on a boat in Key West, FL, in 2012.  See this FBI story “The Fraudster Who Faked His Own Death: Inside the Aubrey Lee Price Case” for more details.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Mark Malik Indicted In New York- Charged with Securities Fraud

February 15, 2015- Long Island, New York

Mark Malik (aka Moazzam Ifzal Malik) age 33, of Lahore Pakistan, was indicted and charged with stealing over $250,000 from five investors in connection with a purported hedge funds Seven Sages Capital, Wall Street Creative Partners, American Bridge Investments and Wolf Hedge , according to N.Y. Attorney General Eric T. Schneiderman. 

Victims are located in New York, Florida, Texas, Canada and Switzerland. Here is a link to Malik’s website. 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dean Mustaphalli Fund Losses ?

Rex Securities Law is investigating former broker Dean S. Mustaphalli of Forest Hills, NY, who was last registered with Sterne Agee Financial Services from 12/2009-9/2011.

On December 15, 2015, the Financial Industry Regulatory Authority (FINRA) entered an Order Accepting Offer of Settlement in Disciplinary Proceeding No 2013036880302 in which Mustaphalli consented to the entry of findings and violations consistent with a complaint filed against him by FINRA and the entry of sanctions.

Findings in the complaint include:

  • In 2011, Mustaphalli formed and managed a hedge fund which raised $6 million and received  compensation for managing the fund but failed to provide written notice or receive written acknowledgement from his employer member firm
  • Mustaphalli failed to timely provide a list of the hedge fund clients or unredacted account statements to FINRA in connection with their investigation into his activities.

Mustaphalli was suspended for two years, assessed a fine of $20,000 and ordered to disgorge management fees of $41,800.

If you suffered losses as a result of investments you made with Mustaphalli, contact us to learn your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Plan member Securities Broker Gregory Langsett Barred From Securities Industry

October 24, 2014-Ft. Lauderdale, FLorida

Gregory S. Langsett entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he failed to provide information and documents in connection with a FINRA investigation that he participated in a private securities transaction in December 2013 by soliciting an elderly customer to invest in a purported hedge fund without permission from his member firm, Planmember Securities Corporation.   Case # 2013039263101.

Langsett was permanently barred from the securities industry. FINRA records indicate Langsett was registered with Planmember Securities Corp from 10/2013-6/2014.  Prior to that he was registered with Austin, Texas-based, Veritrust Financial from 4/2002-10/2013.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Nikolai Battoo & His Companies Hit With $358 Million In Sanctions

The SEC announced that on September 30 ,2014, Judge Edmond E. Chang, U.S. District Court of Illinois Eastern Division issued and order and final judgment by default against Nikolai Battoo and two of his companies BC Capital Group S.A. (Panama) and BC Capital Group Limited (Hong Kong)

A permanent injunction was imposed as well as disgorgement, interest and penalties of $358 million.  Battoo was a hedge fund manager who defrauded investors worldwide in a fraud that began around 2008. Battoo, who raised hundreds of millions in the U.S. in Private International Wealth Management (PIWM),  concealed the fact that he had suffered huge losses by sending out fraudulent account statements.

The SEC had charged Battoo, his companies and marketing chief Tracy Lee Sunderlage in 2012. In August 2014, they charged Julian Brown and his company Alliance Investment Management Limited for their role in the Battoo fraud.

If a licensed broker made the recommendation for you to invest in Private International Wealth Management , Alliance Investment Management Limited, B.C. Capital Group, the Anchor Funds, Galaxy Fund, Phi R Squared funds, FuturesOne Diversified funds or any other company a part of the Battoo fraud, call to learn how you may be able to recover damages.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

SEC Files Action vs. Wealth Strategy Partners & Stevens Resource Group

On September 25, 2014, the U.S. Securities & Exchange Commission filed a complaint against Wealth Strategy Partners, LC, Harvey Altholtz, Stevens Resource Group, LLC and George Q. Stevens alleging that they engaged in fraudulent conduct by making misstatements and omissions to investors in offering materials for two private investment funds, The Adamas Fund and The Stealth Fund. 

According to the complaint, SEC v. Wealth Strategy Partners, et al, filed in the Middle District of Florida, Tampa Division, nearly $31 million was raised in those two funds and the defendants failed to disclose that they used Stealth’s assets to guarantee certain loans Altholtz and his family’s trusts made to two of the companies in the Stealth Fund’s investment portfolio.

Altholz is 66 and a resident of Sarasota, Florida, and is a principal of Wealth Strategy. Wealth Strategy is a Florida LLC located in Sarasota, FL. Neither are registered with the the SEC.

Stevens is 67 and resides in Lacey, Washington, and is managing partner of Stevens Resource, an unregistered investment adviser, also in Lacey.

The Adamas and Stealth Funds are Minnesota liability limited partnerships formed for the purpose of engaging in investment activities as an unregistered private investment fund.

The SEC is seeking an injunction, disgorgement of ill gotten gains and other relief.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Failure to Heed “Red Flags” In Ponzi Scheme Results in $280,000 Fine For Morgan Stanley Smith Barney

September 15, 2014, Washington, DC

Morgan Stanley Smith Barney was fined  $280,000 and ordered to disgorge commissions in connection with a  $35 million Ponzi Scheme being operated in a purported  British Virgin Island hedgefund, SureInvestment.

Under Morgan Stanley’s compliance procedures, the British Virgin Islands is deemed a “high risk jurisdiction”. According to the release from the U.S. Commodity Trading Futures Commission (CFTC) , in Morgan Stanley Enhanced Due Diligence and Customer Identification Program procedures they are required to “know its customer” and to be alert for any “red flags” regarding suspicious activity.

Earlier this year, the owner of SureInvestment, Benjamin Wilson, was sentenced to seven years by the U.K. Financial Conduct Authority.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900