Articles Tagged with Infinity Q

Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses as a result of conflicted, fraudulent, and negligent financial advice.  Sometimes the investments advisors recommend are themselves engaged in a fraud or some other scheme. These sorts of games can happen in any investment fund, but are far more common in private equity or other private investment funds.

The Securities and Exchange Commission (SEC) has charged James Velissaris, the former Chief Investment Officer and founder of Infinity Q Capital Management, with overvaluing assets of funds his company sold by more than $1 billion while pocketing tens of millions of dollars in fees. The SEC’s complaint alleges that, “from at least 2017 through February 2021, Velissaris engaged in a fraudulent scheme to overvalue assets held by the Infinity Q Diversified Alpha mutual fund and the Infinity Q Volatility Alpha private fund.” According to the SEC complaint, “Velissaris executed the overvaluation scheme by altering inputs and manipulating the code of a third-party pricing service used to value the funds’ assets. Velissaris allegedly collected more than $26 million in profit distributions through his fraudulent conduct and without disclosing his activities to investors.

“While Velissaris marketed the mutual fund as a way for retail investors to access investment strategies typically reserved for high-net-worth clients,” the SEC alleges, “what he actually offered them were fraudulent documents, altered performance results, and manipulated valuations.” The SEC also alleges that, “by masking actual performance, Velissaris sought to thwart redemptions by investors who likely would have requested a return of their money had they known the funds’ actual performance, particularly in the volatile markets in the wake of the COVID-19 pandemic. The complaint alleges that at times during the pandemic, the funds’ actual values were half of what investors were told.”

Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from esoteric investments like the Infinity Q funds. Although some investment vehicles restrict withdrawals over a certain period of time, it’s a bad sign for investors when redemptions are suddenly halted without any warning. That was the situation recently with the $1.8 billion Infinity Q Diversified Alpha Fund, which shut down redemptions and locked out its founder, James Velissaris.

On Feb. 22, the parent company of the fund – Infinity Q Innovative Investments – “informed investors in the fund that it had received approval from the Securities and Exchange Commission (SEC) to suspend redemptions and postpone the date of redemption payments beyond seven days because it is `unable to value certain assets held in the fund,’” according to Investment News.

The SEC’s order states that “the fund learned on Feb. 18 that Infinity Q chief investment officer and company founder James Velissaris had been tweaking the methodology for counting certain asset valuations, which raised doubts about the accuracy of the reported fair value of those fund holdings.” Infinity Q could not be reached for comment by Investment News. Infinity posted on its website confirming the SEC findings on Feb. 19 stating that “it could not value the assets for purposes of calculating the fund’s net asset value.”

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information