Timothy Stephen Dembski Allegedly Implemented Fraudulent Means to Induce Investors to Invest in Prestige Wealth Management Fund

stockbroker fraud attorney

Between March 1, 2012 and September 1, 2012, Timothy Stephen Dembski fraudulently induced two retail customers to invest in the Prestige Wealth Management Fund, LP (PWMF), allegedly, and Walter Francis Grenda Jr. also allegedly fraudulently induced three retail customers to invest in PWMF, the FINRA Department of Enforcement alleges.

During the aforementioned time period Dembski and Grenda were registered with FINRA through associations with their member firm Mid Atlantic Capital Corporation (MACC).

Dembski and Grenda allegedly led investors to believe that Prestige was a “growth” fund that would be based on a computer algorithm that included risk protections and stop-losses to limit losses in the PWMF, whereas reality shows that it was a speculative investment, the FINRA Department of Enforcement further reports.

Grenda’s Recommendation Was Allegedly Rather Speculative, Lost 80% of Value in One Month Alone

In fact, the PWMF was a speculative investment, the FINRA Department of Enforcement alleges, and a person known only as SMS, the fund’s Chief Investment Officer, reportedly had complete control over the investments that the fund made and, opposite to what Dembski and Grenda told prospective investors, it was not obligated to follow a computer algorithm.

Furthermore, FINRA notes, in December 2012, the last full month that PWMF was traded, it lost over 80% of its value.

What is more, with regard to the marketing of the fund, the FINRA Department of Enforcement further alleges that Dembski and Grenda reportedly gave prospective investors the Prestige Wealth Management Fund, LP Confidential Private Placement Memorandum that they allegedly knew contained material misrepresentations about SMS’s professional experience.

The PPM stated that SMS had ”co-managed a portfolio ofover $500 million” and was responsible for “portfolio management and analysis” all of which was allegedly materially misleading, FINRA reports.

Investor Recovery Lawyers Investigating

The Peiffer Rosca Wolf investment recovery lawyers often represent investors who lose money as a result of investment misconduct. 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 misconduct may contact the investor recovery 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: Timothy S. Dembski

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Broker: Walter F. Grenda

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Alan Rosca (1169 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.