Cheetah Fund L.P. – Investment Losses and Lawsuits
The White Law Group is investigating potential securities fraud claims involving investments in Cheetah Fund L.P., a hedge fund at the center of a recent Securities and Exchange Commission (SEC) complaint alleging a multi-million-dollar fraud scheme.
According to the SEC, from January 2019 through January 2023, the fund’s manager, Craig Allen, allegedly misled investors and misappropriated millions of dollars in investor capital. The fund reportedly raised approximately $9.9 million during this time, largely based on allegedly false claims of performance and fraudulent investor statements.
SEC Allegations – Cheetah Fund Misrepresentations
The SEC’s complaint alleges that Cheetah Fund L.P.:
- Falsely claimed strong returns, despite suffering over $4.59 million in realized trading losses;
- Issued fraudulent account statements to investors showing fictitious gains to encourage reinvestment;
- Falsely represented that a third-party accounting firm audited the fund, even circulating forged auditor letters;
- Misrepresented the involvement of a former NFL quarterback or his family as investors to boost credibility;
- Allowed the misappropriation of at least $2.64 million in investor funds for personal use by the fund’s principal, in violation of the fund’s compensation disclosures.
Investors were reportedly led to believe that management fees would only be earned based on positive fund performance, but the SEC alleges this structure was not honored in practice.
Red Flags for Investors
Investors should be cautious when offered private hedge funds like Cheetah Fund L.P., especially when:
- The fund is not subject to routine regulatory oversight or independent audits;
- There is a lack of transparency in performance reporting;
- The fund is marketed through independent brokers or third-party advisors without proper due diligence.
Was Cheetah Fund Recommended by Your Financial Advisor?
Brokers are required to perform due diligence before recommending any investment.
If your broker or financial advisor recommended an investment and you suffered investment losses, you may be able to pursue a claim against the firm for failing to properly vet the investment or for misrepresenting the risks involved.
The White Law Group’s Investigation
The White Law Group is currently investigating whether brokerage firms or financial advisors may be liable for unsuitable investment recommendations, misrepresentation, or failure to perform adequate due diligence in connection with Cheetah Fund L.P.
We represent investors nationwide in claims to recover losses in alternative investments through FINRA arbitration and other dispute resolution venues.
Frequently Asked Questions (FAQs)
1. Can I recover losses from an investment in Cheetah Fund L.P.?
Possibly. If your advisor or brokerage firm recommended the fund without proper due diligence or failed to disclose the risks, you may have a valid claim for damages. Each case is unique, so it’s important to consult an experienced securities attorney.
2. What is the Cheetah Fund L.P. accused of?
According to the SEC, the Cheetah Fund, controlled by Craig Allen, was used to perpetrate a multi-million-dollar fraud. Allegations include falsifying performance records, forging auditor documents, misrepresenting investor involvement, and misappropriating investor funds.
3. What should I do if I invested in the Cheetah Fund?
Contact our office for a free consultation at 888-637-5510. The White Law Group can evaluate your situation and help you understand your legal rights and potential options for recovery.
