SEC Charges Wealth Strategy Partners, LC and Stevens Resource Group, LLC with Fraud

Rochester stockbroker fraud attorneyOn September 25, 2014, the Securities and Exchange Commission (SEC) filed a civil injunctive action charging Wealth Strategy Partners, LC, of Sarasota, Florida, Stevens Resource Group LLC, of Washington State, and their respective principals, Harvey Altholtz and George Stevens, for fraudulent conduct in relation to two private funds, the Adamas Fund, LLP and the Stealth Fund, LLP. Wealth Strategy and Altholtz, the SEC alleges, controlled and managed the two funds and later served as investment advisers as well. Stevens Resource and Stevens also reportedly served as investment advisers to both funds.

Altholtz Founded Adamas and Stealth, According to SEC Reports

According to the SEC, in 2007 Altholtz established both Adamas and Stealth in order to primarily invest in small publicly-traded companies commonly referred to as “nanocaps.”  These investments in small companies were usually comprised as promissory notes, convertible notes, or warrants, the SEC notes.  The SEC further alleges that between 2007 and 2008, the Adamas Fund, Altholtz and Wealth Strategy raised approximately $18 million from approximately 86 investors. Between 2007 and 2009, the Stealth Fund, Altholtz and Wealth Strategy reportedly raised approximately $12.7 million from approximately 57 investors between 2007 and 2009. In sum, Altholtz and Wealth Strategy raised approximately $30.8 million, the SEC reports.

SEC Complaint Alleges Wealth Strategy and Altholtz Gave Preferential Treatment

Wealth Strategy and Altholtz committed acts of fraud by giving an Altholtz family trust, which was also investor in Adamas, preferential treatment regarding to redemptions concerning other investors, the Complaint alleges. The Complaint further reports that the defendants made misstatements and omissions in newsletters to investors regarding the financial condition of some of the funds’ portfolio companies.

Investment Fraud Lawyers Investigating

The Peiffer Rosca Wolf securities attorneys often represent investors who lose money as a result of 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 Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Broker: Harvey Altholtz

Status: INVESTIGATED by Peiffer Rosca.

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Alan Rosca (1252 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.