Alliance Investment Management and Julian Brown Accused of Multi-Million Dollar International ‘Ponzi Scheme’
Alliance Investment Management, the main broker/dealer subsidiary for BISX-listed Benchmark (located in the Bahamas), and it’s president, Julian Brown, were accused of allegedly enabling a multi-million dollar international ‘Ponzi scheme’, as per the SEC charges.
The Peiffer Rosca law firm’s securities practice attorneys Alan Rosca and Joe Peiffer are investigating the matter on behalf of investors.
Alliance Investment Management and Julian Brown Allegedly Defraud Investors
Alliance Investment Management, headed by Brown, allegedly claimed to be the “custodian” for assets which were controlled by Nikolai Battoo, hedge fund manager, and his Benchmark Capital Group, as reported by the SEC. Brown and Alliance Investment Management falsely described themselves to investors as Battoo’s custodian. In reality, the firm and Brown did not have custody of almost all of the assets itemized on the investor account statements since 2009.
Battoo produced incorrect account statements which inflated the value of investors’ assets by more than $150 million, as per the SEC charges. Brown and Alliance Investment Management permitted Battoo to partake in these actions and then continued to regularly provide the false account statements for auditors and other individuals acting in the interests of Battoo’s investors.
Brown and Alliance Investment Management allowed Battoo to use at least $45 million of his investors’ funds inappropriately by transferring money from investors’ accounts to Battoo’s direct accounts, as stated by SEC regulators. These alleged actions are in clear violation of SEC rules.
Benchmark Capital Continues Support of Alliance Investment Management
In May, Benchmark Capital restated their support for Alliance Investment Management and added a guarantee that it would remain financially solvent until the end of 2015, as reported by Tribune Business. At the end of 2013 it was discovered that the directors had to strengthen this original position supporting Alliance Investment Management amidst concerns expressed by the Securities Commission over the competence of a subsidiary’s regulatory capital.
Investor Right Attorneys Investigating Alliance Investment Management’s and Julian Brown’s Misconduct
The Peiffer Rosca attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of any losses they may have suffered in connection with Alliance Investment Management and Julian Brown. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.