Platinum Partners Credit Opportunity Fund Losses With Your Brokerage Firm? Please Call Today

AdobeStock_123495998-1-300x197Did you lose money with Platinum Partners Credit Opportunity Fund or with one of its hedge funds? If so, please call 312-332-4200 today to speak to an attorney for a no-cost, no-obligation assessment of your legal options. We are securities attorneys based in Chicago and Barrington, Illinois who recover money for investors on a contingency fee basis only. We do so in the Financial Industry Regulatory Authority (FINRA) arbitration forum. We may be able to help you recover your losses with Platinum Partners. If your broker or brokerage firm sold you Platinum Partners, you may be entitled to recover money because these were unsuitable, highly risky and illiquid investments. Many brokerage firms may have sold Platinum Partners or received selling compensation or fees because of the sale of these securities and these include:

 

Palladium Capital Advisors LLC

Monarch Bay Securities LLC

Financial Fairplay AG

Cantone Research Inc.

Thomas Group Capital

Cluran Group

Fin West

Alphasource Capital Securities LLC

Paratum Inc.

Eaton Partners LLC

Abraham Biderman/Eagle Advisors

Spencer Clarke LLC

Seton Securities Group

C-Advisors

Bhargava Capital

KPG Capital Partners LLC

Gar Wood Securities LLC

Alpha Securities LLC

Shepherd Kaplan

 

In December 2016, top executives of Platinum Partners, led by Mark Nordlicht, were arrested and charged with running a $1 billion fraud that became “like a ponzi scheme,” according to federal prosecutors. Its co-founder, Murray Huberfeld, was also arrested in June of last year, along with six others. Platinum was known for producing exceptionally high returns and took an aggressive approach to investing and fund management. Red flags began to wave when the hedge fund claimed 17% in annual gains. Before that, in 2007, the Bank of Montreal accused Nordlicht of helping a rogue trader, costing the bank $500 million.

In 2010, the Securities and Exchange Commission (SEC) investigated a “scheme to profit from the imminent deaths of terminally ill patients,” when they discovered Platinum had funded the deals. In 2011, a Florida lawyer confessed to running a $1.2 billion ponzi scheme and claimed that Nordlicht was his biggest funder, lying to help secure new investors in the scheme. The losses with Platinum Partners’ fraud may reach up to $1 billion, according to prosecutors. The investigation also includes Platinum Credit Holdings LLC, Platinum Credit Management LP, Platinum Partners Value Corp and Platinum Mangaement LLC.

Many of Platinum Partners’ victims were members of New York’s Orthodox Jewish community. The fund touted auditors and “independent valuations” by an experienced consultant. But the consultants claim that Platinum never visited the California oil fields that were allegedly producing oil, and in reality, were not. Platinum was also allegedly inflating its returns by reporting false valuations for some assets, including the California oil fields. The firm in 2014 valued them at about $140 million, but actually, the project barely produced any oil. Platinum could not sell the oil fields, so instead, used illegal kickbacks from Norman Seabrook, who controlled a pension fund as president of New York City correction officers’ union. Seabrook was also arrested for his role in the scheme.

In another instance in December 2012, executives at Platinum misrepresented the value of Black Elk Energy, an oil and gas company Platinum controlled, valuing it at $283 million. In reality, there had been an explosion on the company’s platform in the Gulf of Mexico the month before, which caused the death of three workers and an oil spill. Black Elk no longer exists. The SEC also took notice after a Los Angeles rabbi allegedly tricked terminally ill hospice patients into providing personal information so annuities could be purchased in their names. The firm sought to profit from these actions.

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