Articles Tagged with Hedge Fund

If you invested money with Robert Walberg, Stoltmann Law Offices may be able to help you recover your money. On January 24, 2019, the Illinois Securities Department issued a Temporary Order of Prohibition against Robert C. Walberg, Chartwell Strategies LP, and Chartwell Advisory Group LLC. Chartwell Strategies LP is a hedge fund created and sold by Robert C. Walberg and his company, Chartwell Advisory Group LLC. According to the Illinois Securities Department, Mr. Walberg solicited an Illinois resident at the end of 2017 and early 2018 to invest in Chartwell Strategies LP. Mr. Walberg allegedly commingled his client’s funds with his personal assets. Mr. Walberg also solicited investors outside of Illinois, including Pennsylvania, and relied on other financial professionals, like accountants, to refer investors to him and Chartwell. Over $2 million has been invested in Chartwell Strategies. In the Order, the Illinois Securities Department found that Mr. Walberg violated Section 12.F and 12.I of the Illinois Securities Law, which prohibit the fraudulent sale of securities to Illinois residents. Walberg and Chartwell are still under investigation and the Illinois Securities Department has reached out to investors to notify them of these scheme.

Mr. Walberg was a registered FINRA broker on and off from 1984 through 2013, but he has not been registered with the SEC or FINRA since November 2013. Some of the firms with who was registered include T3 Trading Group LLC, Waddell & Reed, Inc., Capstone Investments, E.F. Hutton & Co., and Francis Manzo & Co., Inc.

Chartwell Strategies was registered with the Securities and Exchange Commission as a Regulation D offering on August 10, 2015. According to Form D, Mr. Walberg and Chartwell operate out of Rolling Meadows, Illinois and Mr. Walberg is the Executive Officer and Promoter of Chartwell Strategies L.P. The minimum investment is $25,000 and Mr. Walberg receives a 1% annual management fee of the total assets under management. A Regulation D private placement allows a company to raise capital without registering with the SEC, other than filing a Form D. However, given that Mr. Walberg has not been registered to sell securities since 2013, he was not allowed to sell the Chartwell hedge fund to anyone, and violated the Illinois Securities Law by doing so.

Stoltmann Law Offices is interested in speaking to those investors who may have invested with Merrill Lynch in the fund MLCXX6LSER Index (MLC Index). Craig Kinard, a Merrill Lynch adviser, was accused of making MLC Index recommendations and sales. MLC Index is allegedly one of the most complex investment products that could be sold to a retail investor, and, therefore, is suitable to few investors. The Index involved extreme leverage, commodities, derivatives, options and swaps risk. The MLC Index proved to be too great of a challenge for brokers and customers to understand, and many customers lost money. Also, the Index was subject to enormous costs and fees. Merrill Lynch advertised the Index as having “Low Volatility” and producing “Consistent Returns” to investors and that it provided back testing data showing that the fund would have an annualized return of 6.77% and that from 2002 until 2011 the fund did not have a single negative return year. Merrill Lynch failed to properly explain and disclose the main risks to arbitrage funds in that the hedging strategy, or the correlation assumptions, will not prove accurate. The Fund was volatile. If you lost money with the MLC Fund and Merrill Lynch, please call our securities law firm today to speak to an attorney about your options. The call is free with no obligation. We may be able to help you recover your losses.

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