Equinox Fund Management LLC—Overcharged Fees, Misled Investors

Rochester stockbroker fraud attorneyEquinox Fund Management LLC Allegedly Misled Investors with Excessive Management Fees and Information Regarding Valuation of Certain Assets

Equinox Fund Management LLC, Denver-based alternative fund, allegedly overcharged management fees and misled investors about how it valued certain assets, according to recent allegations by the Securities and Exchange Commission (“SEC”).

Equinox Fund Management LLC also allegedly calculated management fees contrary to the method described in registration statements for a managed futures fund called The Frontier Fund (TFF), the SEC notes.

What is more, Equinox Fund Management LLC also allegedly deviated from its disclosed valuation methodology for some TFF holdings, the SEC reports.

Equinox Fund Management LLC to Refund Investors Approximately $5.4 Million in Alleged Excessive Management Fees Collected Plus $600,000 in Prejudgment Interest; Agrees to Pay $400,000 Penalty

Equinox Fund Management LLC has allegedly agreed to refund investors approximately $5.4 million in excessive management fees collected during a seven-year period plus $600,000 in prejudgment interest, and has also agreed to pay a $400,000 penalty, according to a recent report from an SEC Commission.

The SEC’s order goes on to allege that TFF’s registration statements disclosed that Equinox charged management fees based upon the net asset value (NAV) of each series, but that Equinox actually used the notional trading value of the assets, which is the total amount invested including leverage.

Furthermore, the SEC notes that Equinox allegedly overcharged the fund $5.4 million in fees from 2004 to 2011, and TFF’s Form 10-K for 2010 and Forms 10-Q for the first and second quarters of 2011 disclosed that its methodology of valuing certain derivatives was “corroborated by weekly counterparty settlement values.”

The Peiffer Wolf Carr & Kane Securities Lawyers Often Assist Investors

The Peiffer Wolf Carr & Kane securities lawyers assist investors who lose money as a result of firms allegedly overcharging management fees and misleading investors through unsuitable trading. 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 firms allegedly overcharging management fees and misleading investors with unsuitable trading schemes are encouraged to contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.


phil korosec (1251 Posts)

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.