SEC Charges Infinity Q Founder Over Valuation Fraud

Posted on February 28th, 2022 at 1:42 PM
SEC Charges Infinity Q Founder Over Valuation Fraud

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has charged former Chief Investment Officer and founder of Infinity Q Capital, James Velissaris, for allegedly overvaluing assets by more than $1 billion while collecting million of dollars in ill-gained fees. 

The SEC alleges that Velissaris conducted a scheme to fraudulently inflate assets held by the Infinity Q Diversified Alpha mutual fund and the Infinity Q Volatility Alpha private fund between 2017 and February 2021. The SEC’s complaint alleges that Velissaris engaged in the overvaluation scheme by manipulating inputs and the code of a third-party pricing service utilized to value assets held by the fund. Velissaris allegedly generated at least $26 million in profit distributions via his fraudulent scheme and failed to disclose his conduct to investors, according to the SEC. 

The SEC further alleges that Velissaris attempted to halt redemptions by investors. According to the SEC, the funds’ actual values were half of what investors were informed at times during the pandemic. The SEC filed its complaint in the U.S. District Court for the Southern District of New York, charging Velissaris with violating antifraud and other provisions of the federal securities laws.  

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, sec, fraud

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

May 9, 2025
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

FINRA has fined and suspended former Wells Fargo financial advisor Jarrett Thomas after he executed a $50,000 transaction for an elderly client despite being informed that she was no longer capable of managing her finances.

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.