Florida Based Investment Advisor Firm Is Charged in Ponzi Scheme

Posted on January 22nd, 2015 at 2:17 PM
Florida Based Investment Advisor Firm Is Charged in Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC has charged a Florida based investment advisor firm, Elm Tree Investment Advisors LLC, its founder Frederic Elm, and its private funds Elm Tree Investment Fund LP, Elm Tree “e” Conomy Fund LP, and Elm Tree Motion Opportunity LP with defrauding investors out of $17 million.

The alleged fraudsters misled investors and used most of the money raised to make Ponzi-like payments to the investors.  Elm allegedly used the funds to buy himself a $1.75 million home, luxury automobiles, and jewelry and to cover daily living expenses.  Elm’s wife also is involved in the charge due to her receipt of investor monies. 

According to the SEC, Elm misled investors about how he and his funds would use their money and about how much he charged them in fees. As a result, Elm was able to wrongfully take millions of dollars from investors without their knowledge.

Notably, the speed by which Elm and his entities raised funds is astounding: the fraud allegedly began only 13 months ago! Investors and others with information as to how his fraud transpired should contact Eccleston Law, LLC.

 The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: SEC, FINRA, Florida based advisor, Elm Tree Advisors, Frederic Elm

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