Frederic Elm and His Elm Tree Investment Advisors LLC Charged in Alleged $17M Ponzi Scheme
Frederic Elm, of Fort Lauderdale, FL, and his Elm Tree Investment Advisors LLC allegedly operated a $17M Ponzi Scheme, according to a complaint filed by the Securities and Exchange Commission currently being reviewed by attorneys Alan Rosca and Joe Peiffer.
The Peiffer Rosca Wolf investment recovery lawyers are currently investigating Elm Tree Investment Advisors LLC, its founder and manager, Frederic Elm (formerly Frederic Elmaleh), and three funds – Elm Tree Investment Fund LP, Elm Tree ‘e’Conomy Fund LP, and Elm Tree Motion Opportunity LP.
Starting in November 2013, Elm and his Elm Tree Investment fund allegedly raised millions from more than 50 investors through securities sales of the Elm Tree Investment Fund, according to an SEC complaint under review by attorneys Joe Peiffer and Alan Rosca. The SEC further alleges that the alleged Elm Tree scheme is still ongoing.
Elm Tree Investment Not Registered Entity; Frederic Elm Allegedly Made Misleading Valuation Statements to Lure Investors
Elm Tree Investment Advisors, not a registered entity, allegedly ran a Ponzi scheme by collecting investments after making misleading statements to investors including false valuation statements, according to the SEC complaint currently being reviewed by attorneys Alan Rosca and Joe Peiffer.
For example, one statement allegedly claimed that the ‘e’Conomy Fund was valued at $125 million at the end of November 2014, which is rather unlikely as the fund did not earn a profit, according to the SEC complaint.
What is more, Elm and his advisory firm would allegedly make an initial offering to investors, stating that a 2 percent annual management fee would be charged, according to the SEC complaint. However, Elm and his firm only invested a portion of investor funds, and Elm reportedly used the funds for his own expenses, the SEC notes. Elm 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 rights lawyers are investigating Elm, and welcome investor inquiries.
Investment Recovery Lawyers Investigating
The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct and Ponzi schemes, and are currently investigating Frederic Elm, and his alleged Elm Tree Investment Advisors LLC Ponzi scheme. 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.
Any investor who believes they lost money as a result of Frederic Elm, and his alleged Elm Tree Investment Advisors LLC Ponzi scheme are invited to contact the investment recovery attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.