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Platinum Partners Securities Fraud Investigation

Have you suffered investment losses in Platinum Partners Value Arbitrage Fund USA LP or Platinum Partners Credit Opportunities Master Fund? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Founded in 2003, Platinum Partners is an investment management group that as recently as March reported to the SEC and other regulators that it had $1.7 billion in assets under management. The firm manages multiple funds, but most assets were invested through Platinum Partners Value Arbitrage Fund and Platinum Partners Credit Opportunities Master Fund.

The trouble with alternative investment products, like Platinum Partners Value Arbitrage Fund USA LP or Platinum Partners Credit Opportunities Master Fund is that they involve a much greater degree of risk compared to traditional investments, such as stocks, bonds or mutual funds. Alternative investments are typically sold as unregistered securities and lack the same regulatory oversight as more traditional investment products.

Now some troubling news has come to light. Platinum Partner’s founder and six others were arrested on December 19 on charges relating to a $1 billion fraud.

The men were charged with securities fraud and investment adviser fraud in a $1 billion Ponzi scheme, according to an unsealed indictment filed in Federal District Court in Brooklyn.

Mark Nordlicht, a founder and chief investment officer, and David Levy, co-chief investment officer, were among those arrested.

Federal prosecutors in Brooklyn contend that since 2012, executives overvalued the assets that Platinum invested in and misrepresented the performance of certain funds, at times inflating the value significantly.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Platinum Partners Value Arbitrage Fund USA LP or another Platinum Partners private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.


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