Securing a meaningful recovery for investors defrauded in a hedge fund, securities scam or Ponzi scheme requires the services of a sophisticated investigative staff and a complex trial team, along with domestic and international insolvency experience.
Stradley Ronon’s Hedge Fund & Financial Fraud Team has represented institutional investors, fund-of-funds, individual investors and a court-appointed Receiver in connection with the most substantial financial frauds of the last decade. When the CFTC discovered a massive fraud at the Philadelphia Alternative Asset Fund, a Stradley Ronon partner was appointed by the Court to serve as the Receiver for the fund. Acting on behalf of the Receiver, Stradley Ronon’s team conducted a full investigation and commenced litigation against various third parties, leading to a recovery of approximately $180 million (more than 60% of the amount invested) for the benefit of defrauded institutional investors worldwide. Stradley Ronon’s team is currently engaged on behalf of mutual funds, institutional investors, charitable foundations and individual investors victimized by Ponzi schemes and corporate fraud ranging from Bernard Madoff to Satyam Computer Services, Ltd.
Given our experience, Stradley Ronon’s Hedge Fund & Financial Fraud Team can assist institutional and individual investors in addressing the complex questions posed by fraudulent schemes of this magnitude:
- What the investigation timeline could look like, specifically for affected investors?
- What is the Receiver's role?
- If the defrauder is bankrupt, from whom can the investors recover their losses?
- In addition to the defrauder, who are some of the likely responsible parties?
- What is the “clawback” potential and how should investors respond?
- How should investors address the tax planning issues created by the discovery of the fraud?
In addition, the Stradley Ronon team collaboratively assists organizations, foundations and charities through the complicated process of dealing with fraud. Our nonprofit & religious organizations group specializes in handling litigation and complex issues for tax-exempt organizations, the majority of which we represent under Section 501(c)(3) of the Internal Revenue Code. Of particular note, Practice Group Chair Mark Chopko has more than 20 years of experience serving as the principal legal officer to the U.S. Conference of Catholic Bishops and now continues to advise nonprofit and religious organizations in various matters including structural, business, governance, regulatory and general litigation.