Securities Litigators Investigating Geoffrey W. Nehrenz in Connection with Alleged Misappropriation of Investor Funds

Geoffrey W. Nehrenz is barred from the securities industry by the Securities and Exchange Commission (SEC) due to claims he offered and sold unregistered securities, misappropriated investor funds for his own personal use and unrelated business use, and made misrepresentations regarding investments and the use of investor funds. Securities attorneys Joe Peiffer and Alan Rosca are investigating the matter.

Nehrenz was the managing member, president, and chief executive officer of Keystone Capital Management, LLC, according to the Ohio Securities Division’s complaint against Nehrenz the SEC referenced in the order barring Nehrenz. Nehrenz, through Keystone Capital Management, provided investment advice to, made investment decisions for, and managed the assets of, his hedge fund Keystone Active Trader, LLC, according to the complaint.

Nehrenz solicited investors to purchase interests in Keystone Active Trader and raised approximately $7.9 million from May 2009 through September 2012, according to the Ohio Securities Division’s complaint. Nehrenz represented to investors that Keystone Capital Management, which managed the assets of Keystone Active Trader, would be paid, each year, 2% of Keystone Active Trader’s assets under management and 25% of Keystone Active Trader’s gross profits, according to the complaint. Nehrenz also represented that no more than 10% of investor funds would be invested in illiquid investments, according the Ohio Securities Division’s complaint.

Nehrenz paid himself more money than he was permitted and he misappropriated more than $1 million through undisclosed sham loans from Keystone Active Trader to Keystone Capital Management, according to the complaint.

Nehrenz invested approximately 25% of investor funds in illiquid securities, significantly more than the 10% maximum that he represented to investors, according to the complaint.

The SEC stated in the order barring Nehrenz that neither Keystone Capital Management nor Keystone Active Trader was ever registered with the Commission.

Nehrenz consented to his barring without denying or admitting the SEC’s factual findings.

The Peiffer Rosca 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 Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Broker: Geoffrey W. Nehrenz

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Alan Rosca (1168 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.