Hedgehog Investments LLC: Investor Alert
The White Law Group is investigating potential investor lawsuits involving Hedgehog Investments LLC. Investors should be aware that private offerings promising high returns are often associated with less regulatory transparency and increased risks for investors. According to this firm’s disclosures, it “falls into Rule 506(b) of Regulation D.”
In some cases, these firms can operate in a concerning way when financial advisors promote them as safe or guaranteed. If you were a Hedgehog investor that was encouraged to invest based on similar claims, it’s essential to review your documentation and communication records carefully.
Overview of Hedgehog Investments
This investment firm reportedly presents itself as a private lending and investment firm, offering investors fixed returns between 12% and 20% annually. These offerings are allegedly positioned as opportunities to support small businesses while generating passive income.
This firm, with multiple Regulation D exemptions, primarily Rule 506(b), which permits companies to raise capital sought from investors without registering with the SEC, allegedly focused on loans to small to medium-sized businesses. However, investors have raised concerns about Hedgehog fund allocations and whether there was sufficient oversight.
A lack of verifiable performance metrics and verified financial information makes it nearly impossible to determine whether promised returns were achieved.
Hedgehog Investments: Investigation and Cease and Desist Order
On June 7, 2025, the company disclosed on its website that it was under investigation by the Utah Division of Securities.
“As many of you are aware, there is an ongoing investigation by the Utah Division of Securities related to Hedgehog Investments and Corporate Funding Group. The Utah Division of Securities has issued a cease-and-desist order that affects our ability to take certain steps, as well as CFG. As of June 3, 2025, we have retained independent counsel to advise us in the State’s investigation and to respond to their allegations. We look forward to defending ourselves at the appropriate time. We have no further information that we can share at this time.”
Points of Caution
While the State of Utah’s investigation is only that and does not indicate or prove that there has been any wrongdoing by Hedgehog Investments LLC or its affiliates, several factors associated with Regulation D investments like Hedgehog and the representations made by Hedgehog concerning their offerings do, nonetheless, warrant careful consideration:
- Regulatory Filings: A Regulation D filing was submitted for Hedgehog Holdings I, LLC, indicating a notice of exempt offering. However, this filing does not equate to SEC approval or comprehensive regulatory oversight.
- High-Yield Promises: The advertised fixed returns of 12–20% are higher than typical market averages. Typically, high returns are associated with higher risk and vice versa.
- Transparency and Oversight: As is the case with all Regulation D offerings, there is limited publicly available information compared to that of public companies that have more stringent reporting requirements.
Private Placement
Regulation D offerings are exempt from SEC registration and are typically marketed to accredited investors. These investments are often riskier due to a lack of transparency, liquidity, and oversight of other, more traditional investments. Many Reg D investments are sold by independent brokerage firms and financial advisors who earn high commissions for placing clients in these deals.
How We Can Help
The White Law Group has represented hundreds of investors in FINRA arbitration claims against brokerage firms that improperly recommended high-risk private placements. If you were or are a Hedgehog investor or invested with one of its affiliated entities at the recommendation of a financial advisor and have questions or concerns related to the Utah Department of Commerce’s investigation, please call The White Law Group for a free consultation.
With over 800 FINRA arbitration cases handled and over $55 million recovered for our clients, the attorneys at The White Law Group understand how to navigate the complexities of investors sustaining losses. Our law firm is also a proud member of the Public Investors Advocate Bar Association (PIABA) and can take on cases representing investors across all 50 states.
Get Your Free Consultation
If you are concerned about your investment in Hedgehog Investments or any other private placement offering, contact us or call our securities attorneys for a free consultation at (888) 637-5510. We are committed to protecting your rights, especially if you were misled or financially harmed. Time limits for FINRA arbitration claims apply, so acting fast is essential.
Investment Losses? Contact Us Now for a Free Consultation!
Frequently Asked Questions (FAQs)
What is Hedgehog Investments’ track record?
Unfortunately, finding any third-party data about this hedge fund’s past performance is nearly impossible, as there is limited information available. One reason for that is, unlike public funds, this investment firm doesn’t have to file public financial statements with the SEC or disclose its results to Hedgehog fund investors. Due to that, investors should exercise caution when relying only on this firm’s internal materials or verbal assurances.
Where can I find Hedgehog Investments reviews?
Due to the private nature of this investment firm, you won’t have an easy time finding public reviews like those left on Yelp or Google. However, discussions about how this firm operates are spreading rapidly on investor forums and compliance boards. The current investigation by the Utah Division of Securities may uncover more information about this investment firm as the case progresses.
What should I do if I sustained investment losses from Hedgehog?
If you are a Hedgehog investor who sustained losses as a result of investing in this firm or its related entities, the first thing to do is gather all investment-related records. Losses suffered from the Hedgehog fund can include subscription agreements, risk disclosures, account statements, and any written communication from your advisor. As you look over this information, pay close attention to whether your investments were marked as low-risk, guaranteed, or similar claims.
Last modified: August 4, 2025
