Tr?id=566623520170033&ev=PageView&noscript=1

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
Quotes Bigger

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

1784905692 Law
July 24, 2026
Independent Review Recommends Sweeping Changes to FINRA's Enforcement Program

An independent review commissioned by the Financial Industry Regulatory Authority (FINRA) recommends significant changes to the regulator's enforcement program, including adopting a statute of limitations, expanding due process protections, and providing greater credit to firms that cooperate during investigations, according to AdvisorHub.

1784829196 Law
July 23, 2026
Cresset Sues Former Advisor Over Alleged Client Solicitation and Competing RIA Launch

Cresset Capital Management has filed a lawsuit in Illinois state court against a former advisor, alleging that he began building a competing registered investment advisory firm and soliciting clients while still employed by the Chicago-based wealth management firm.

1784733625 Law
July 22, 2026
Barred Oregon Financial Advisor Pleads Guilty to $1.6 Million Investment Fraud

A former Oregon financial advisor has pleaded guilty to fraud after admitting to a long-running scheme that caused investors to lose more than $1.6 million.