Elm Tree, Frederic Elm Fraud Scheme Charges

ponzi scheme attorneysFrederic 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.

Alan Rosca (1180 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.