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Adviser Defrauds Clients of $10M by Blaming Losses on the 2016 Election, Brexit and Falling Oil Prices

Posted on July 11th, 2017 at 10:30 AM
Adviser Defrauds Clients of $10M by Blaming Losses on the 2016 Election, Brexit and Falling Oil Prices

From the Desk of Jim Eccleston at Eccleston Law LLC:

New York Attorney General Eric Schneiderman has filed a complaint against adviser Dean Mustaphalli, accusing him of defrauding his clients out of millions, and using at least $100,000 of their funds to pay for personal expenses.

According to the complaint, Mustaphalli, owner of the Mustaphalli Fund, misrepresented the nature of the solicited investments, particularly their risk and the fund’s short-term trading strategies, which focused on options trading. In addition, Mustaphalli falsified documents so that clients would appear to be accredited investors as the law required.

Moreover, according to authorities, the fund performed poorly and by December 2014 the fund’s historical performance reflected a net return of negative 97.6%, a near total loss.

Furthermore, when confronted by investors regarding the fund’s performance, Mustaphalli blamed market conditions, Brexit, and the 2016 U.S. election.

At the same time, Mustaphalli allegedly spent investor money on personal expenses and also spent $4,500 to sponsor a cricket club he owned.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory  Matters, Transition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, Adviser, Defraud, 2016 Election

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