If you purchased promissory notes issued through Hedgehog Investments and the expected payments stopped or never arrived, you are likely trying to understand what happened and what options exist. Regulators in Utah issued an emergency cease and desist order alleging that Hedgehog Investments and related entities were not licensed to sell securities and were operating an investment structure that resembled a Ponzi scheme. Public filings and law firm investigations now point to potential investor losses connected to those notes.
Silver Law Group is currently reviewing claims tied to these investments and filed a class action a federal lawsuit that alleges Hedgehog Investments and affiliated entities raised tens of millions of dollars through promissory note offerings marketed to retail investors. These allegations form the basis of our developing Hedgehog Investments Promissory Notes Class Action.
According to public reports and the proposed complaint filed in federal court, Hedgehog Investments and related companies allegedly sold promissory notes to investors across the United States, marketed as opportunities to earn substantial returns through investments in promising private companies. Instead of generating profits from legitimate underlying deals, regulators and investigators allege that investor money was misused and that funds from newer investors were used to make payments to earlier investors.
Utah regulators have also alleged that Hedgehog Investments and related parties were not properly licensed to sell securities and that the offerings themselves were not registered. If those allegations are proven, the structure of the investment itself can raise serious securities law issues.
Promissory note investments often appear simple on the surface. Investors are typically told they will receive fixed interest payments over a set term. In the Hedgehog situation, reports indicate that some notes promised unusually high returns, including rates approaching 49 percent on longer term investments. These representations by Hedgehog Investments are now being scrutinized as part of the developing class action.
The information currently available describes several issues that investors and attorneys are evaluating. These concerns appear repeatedly in the regulatory order and related investigations:
Each of these issues can play a role in securities fraud litigation. If the facts support those claims, investors who purchased the notes may have a legal right to compensation.
Silver Law Group has publicly stated we are investigating potential claims on behalf of investors who purchased Hedgehog Investments promissory notes. Hedgehog raised millions of dollars through these offerings before Utah regulators stepped in and issued an emergency cease and desist order. Because promissory notes were reportedly sold to investors in multiple states, potential claims are not limited to Utah residents. Investors throughout the U.S. can participate in legal actions if the allegations are supported by the evidence.
If you invested in Hedgehog promissory notes and the investment did not perform as promised, reviewing the details of your investment can help determine whether you are eligible to participate in the Hedgehog Investments Promissory Notes Class Action or another recovery effort.
Investors who purchased Hedgehog Investments promissory notes are now evaluating their legal options. Allegations suggest that investors across the country were exposed to similar sales representations and investment materials. If you invested in Hedgehog Investments promissory notes and have questions about your rights, speak with an attorney at Silver Law Group to help you understand the next steps and whether you qualify to pursue recovery.
