Nikolai Battoo Caused Alliance Investment Management to Supply Inflated Asset Values
Nikolai Simon Battoo caused Alliance Investment Management to provide investors with statements that overstated the value of PIWM Portfolio assets, according to a motion filed by Robb Evans & Associates LLC, the court appointed receiver for BC Capital Group, Battoo, and other BC Capital entities.
Battoo, through various BC Capital Group entities, solicited investors to invest in portfolios titled Private International Wealth Management and Private International Wealth Management – Insurance (“PIWM Portfolios”), according to the motion. Battoo and BC Capital Group entities represented to the investors who transferred their funds to the PIWM Portfolios that the PIWM Portfolios would engage in trading of futures contracts, equities and in other investment strategies, however, these representations turned out to be false, as Battoo misappropriated approximately $45.7 million for his personal use and paid approximately $18.3 million to parties related to him, according to the receiver
Battoo controlled the preparation of Alliance’s portfolio statements, according to the receiver. Battoo’s subordinates even requested Alliance to send them copies of its letterhead, according to the receiver.
Battoo caused Alliance, the custodian for investor monies and securities in the BC Capital Group, to issue fabricated portfolio statements to six investors in which assets valued were overstated by a total of approximately $62.2 million, according to the motion. Battoo also caused Alliance to provide fabricated financial data to an independent accounting firm in Switzerland. Based on the fabricated data, the independent accounting firm issued independent financial and asset verification reports to 20 investors that overstated asset values by approximately $86.7 million.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. 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 fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.