Investment Recovery Options for Glen Galemmo Investors
Securities attorneys Jason Kane and Joe Peiffer continue to investigate the alleged Ponzi scheme perpetrated by Cincinnati investment advisor Glen Galemmo and are focusing on a number of possible investment loss recovery options.
Galemmo has been accused of perpetrating a Ponzi scheme that may have been defrauded hundreds of investors nationwide out of tens of millions of dollars.
Regulatory documents reviewed by attorneys Kane and Peiffer suggests Galemmo operated through, and/or was affiliated with, a number of investment vehicles and fund management firms including Galemmo Investment Group, Queen City Investment Funds, LCM Landmark Disciplined Fund, LCM Landmark Active Dividend Fund, Essex & York, QC Power Strategies, Sentinel Strategy Fund, and Sentinel Property Holdings.
Galemmo‘s offices were raided by federal agents earlier this month, according to media reports. Following the raid, Galemmo sent an email to his investors on July 17, 2013, notifying them that Queen City Investments had shut down and directing them to an IRS special agent for any further inquiries, according to the media.
Galemmo made allegedly false, material misrepresentations to his investors to induce them to invest in his fund, according to the lawsuit reported in the media, including that his funds returned a substantial 432% between 2006-2011 and that in 2008, the year of financial industry collapse, he generated a 9.84% return (compared to a 37% decrease in the S&P 500).
“One thing cases of this type have in common is that, when the investment program is shut down, there is a lot of misinformation and very little reliable information available to investors,” said Cleveland attorney Jason Kane. “Investors often feel they do not have sufficient information to make educated decisions, especially since they suddenly learned information they relied upon, from people they trusted, may not be true.”
Very little is publicly known about what happened to the investors’ money. Assuming the allegations against Galemmo are true – and this will have to be proven in a court of law – investors may have an uphil battle recovering their investments from Galemmo himself and his funds.
“In our experience, by the time a Ponzi scheme collapses, there typically isn’t much money left in the scheme itself to be distributed to investors,” said Joe Peiffer, a securities attorney. “Our focus in cases of that type is on those who assisted, or enabled, the perpetration of the scheme – typically a financial institution that noticed the red flags but did nothing,” said Peiffer.
Attorneys Jason Kane and Joe Peiffer are investigating a number of potentially liable parties that, based on evidence they have seen, may have played a role in this alleged scheme. Investors with Glen Galemmo, including investors in Queen City Investment Funds (“QC Funds“), are encouraged to contact attorneys Jason Kane or Joe Peiffer for a free evaluation of their situation and, if applicable, investment recovery options at 585-310-5140.