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Written by 5:58 pm Current Investigations, Securities Fraud Articles

Premium Point Charged with Inflating Fund Performance

Premium Point Investments

Investigating Potential Claims – Premium Point Investments LP

According to various reports yesterday, federal prosecutors charged the founder of New York investment firm Premium Point Investments LP and two others with inflating the value of assets held by the firm’s hedge funds by more than $200 million.

Premium Point’s founder, a former partner and a former trader have reportedly been charged with securities fraud, wire fraud and conspiracy, according to an indictment. The U.S. Securities and Exchange Commission also announced related civil charges against them.

Premium Point Investments, a New York investment firm, managed assets valued at more than $5 billion at its peak, specializing in mortgage-related investments through hedge and private equity funds, according to prosecutors.

According to authorities, between 2014 and 2016, the three men allegedly engaged in a scheme to mark up the value of assets held by Premium’s hedge funds in investor reports.

The complaint alleges that the defendants obtained the inflated values in part through fraudulent quotes on securities from corrupt brokers.

After a questionable audit in 2015, Premium Point allegedly told investors it had overvalued all of its funds by 13 percent to 15 percent from September 2015 to March 2016, according to prosecutors.

Prosecutors further alleged Premium’s mortgage credit hedge fund was mismarked by 24 percent, and dated back to at least January 2014.

Court records show Premium Point Investments LP filed for bankruptcy in March.

Securities Investigation

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

Fortunately for investors, FINRA does provide for an arbitration forum for investors to resolve disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they can be found liable for investment losses in a FINRA arbitration claim.

The White Law Group is investigating potential claims involving the following Premium Point Investments offerings:

Premium Point Credit Fund, LP
Premium Point ERISA Offshore Mortgage Credit Fund, LTD
Premium Point Master Single Family Residential Fund I LP
Premium Point Mortgage Credit Fund, L.P.
Premium Point Offshore Mortgage Credit Fund, Ltd
Premium Point Single Family Residential Fund I LP

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Premium Point Investment offerings, 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. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.



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