Securities Fraud Investigation- Catalyst Hedged Futures Strategy Fund.
Are you concerned about your investment in Catalyst Hedged Futures Strategy Fund? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
According to an article in the Wall Street Journal this week, after losing $700 million, the Catalyst Hedged Futures Strategy Fund was reportedly fined by the SEC for misleading investors.
The Securities and Exchange Commission reportedly filed a lawsuit against Catalyst Capital Advisors LLC and its chief executive, which was settled Monday without admitting or denying wrongdoing and will pay $10.5 million. The SEC and the Commodity Futures Trading Commission also both reportedly filed civil fraud lawsuits against the portfolio manager who ran the Catalyst Hedged Futures Strategy Fund, according to the Wall Street Journal.
The $4 billion fund reportedly bought and sold options on stock-index futures and apparently lost more than $700 million in net asset value from December 2016 through February 2017.
According to the SEC and CFTC, Catalyst and its chief executive allegedly misled investors by saying their strategy would generally prevent losses of greater than 8%. The SEC further alleged Catalyst had no such safeguards and didn’t manage the fund in a way that would limit losses to that threshold.
Securities Fraud Investigation
The White Law Group is investigating the liability that brokerage firms may have for unsuitably recommending Catalyst Hedged Futures Strategy Fund to investors.
Brokerage firms are required to perform due diligence on any offering they recommend and to ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives.?
If you have concerns regarding your investment in Catalyst Hedged Futures Strategy Fund and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.
Tags: Catalyst Capital Advisors, Catalyst Hedged Futures Strategy Fund complaints, Catalyst Hedged Futures Strategy Fund investigation, Catalyst Hedged Futures Strategy Fund investment losses, Catalyst Hedged Futures Strategy Fund lawsuit, SEC Last modified: January 31, 2020