Hedge funds are investment partnerships that are not subject to the same regulatory scrutiny as other investment funds. The lack of regulation allows hedge funds to take advantage of risky opportunities that sometimes pay off in a big way. Hedge funds sometimes boast high returns that more traditional investment funds cannot hope to reach.
However, there are situations where scammers use the freewheeling nature of hedge funds to trick investors out of their money. Some of the biggest frauds in history, including Bernie Madoff’s fraud, were accomplished through hedge funds.
If a fraudster stole your money after you invested in a hedge fund, contact Silver Law Group immediately. We represent investors all over the country in various types of class action litigation and have a well-deserved reputation for excellent results in recovering hedge fund losses. Our hedge fund fraud lawyers will use all their experience and skill to hold the fraudster accountable and get compensation for your losses.
There are many types of hedge fund fraud. Some hedge funds, like Bernie Madoff’s, are simply Ponzi schemes and no legitimate investing took place. Other funds make investments but commit fraud in promoting them.
Sometimes hedge funds omit relevant information about their investments or strategy, or they manipulate the information they disclose. They may overstate the value of the funds to increase their fees or may charge hidden or undisclosed fees. Hedge fund managers sometimes embezzle investors’ money or use it for purposes not disclosed in the prospectus.
If you believe your hedge fund losses resulted from fraudulent activity, contact a securities fraud lawyer at Silver Law Group. We will investigate the situation, and if there’s evidence of fraud, we’ll pursue the fund managers and other responsible parties until we’ve obtained compensation for your losses.
Litigation is costly. Bringing an individual lawsuit against a hedge fund may not be cost-effective, even when you have persuasive evidence of fraud. Class action lawsuits are a way to recoup at least some of your losses and hold the hedge fund managers accountable.
Typically, many investors are affected by hedge fund fraud. For example, if the fund misappropriated investors’ money and lied about it to cover the theft, everyone who was invested in the fund at that time will have lost money based on the same set of facts. They can band together to bring a lawsuit, and share the costs of compiling evidence and presenting it in court.
Silver Law Group attorneys have substantial experience in the unique field of class action lawsuits against hedge funds. We can advise whether a class action is a viable means of taking legal action against a hedge fund in a specific case.
The class action process can be slow, but it is cost-efficient and maximizes your returns. When lawsuits allege losses due to fraud against the same defendant, courts can consolidate them. The parties then engage in an exchange of information called discovery, which can last a year or more.
The defendants may bring a motion to dismiss at several points in the process, but if the court doesn’t grant a dismissal, the case rarely goes to trial. In most cases, the parties reach a settlement and the plaintiffs receive compensation proportionate to their losses.
Sometimes a hedge fund is insolvent by the time investors realize they have been defrauded. Silver Law Group is adept at advocating for investors’ interests with SEC receivers and bankruptcy trustees to ensure you and your fellow investors receive a fair portion of the fund’s assets and all possible avenues of recovery are pursued.
Hedge funds are not as closely regulated as other investments, so shady hedge fund managers have more opportunities to take advantage of clients. If you have been a victim of hedge fund fraud, contact Silver Law Group.
Our hedge fund fraud lawyers represent defrauded investors living anywhere in the U.S. We have a long history of success obtaining favorable settlements for bilked investors, so call us and discuss your story.
