Elm Tree, Frederic Elm Fraud Scheme Charges
Frederic Elm and His Elm Tree Investment Advisors LLC Charged in $17 Million Fraud Scheme
Frederic Elm, of Fort Lauderdale, Florida, his Elm Tree Investment Advisors LLC, and three related funds were recently charged by regulators on Wednesday with a $17 million fraud scheme, according to a complaint from the Florida courts.
Elm Tree Investment Advisors LLC, Frederic Elm (the advisor formerly know and Frederic Elmaleh) and the three funds – Elm Tree Investment Fund LP, Elm Tree ‘e’Conomy Fund LP, and Elm Tree Motion Opportunity LP – were charged with allegedly raising fraudulent millions from more than 50 investors through securities sales of the Elm Tree Investment Fund, the complaint further alleges.
Elm Allegedly Ran a Ponzi Scheme
Elm, by using his company and funds, allegedly ran a Ponzi scheme, whereby he collected investments after allegedly making misleading statements to investors including false valuation statements, according to a complaint from the Florida courts.
Elm and his advisory firm would allegedly make an initial offering to investors, and then claim that a two percent annual management fee would be charged. However, Elm and his firm only invested a portion of investor funds, and Elm reportedly used the funds for his own expenses, according to reports from Florida. Elm reportedly used at least $2 million in investor funds to pay for a $1.75 million home, interior decorating, cars, jewelry and daily expenses, according to the complaint.
The Peiffer Rosca Wolf Investment Recovery Lawyers Often Represent Investors
The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct. 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 misconduct may contact the investment recovery lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.