Did you lose money investing in Infinity Q Diversified Alpha Investor (IQDAX)? Erez Law is currently investigating brokers at brokerage firms across the country who recommended their clients invest in Infinity Q.
According to public records, in February 2021 the fund ceased investor redemptions due to alleged portfolio manager fraud. The Securities and Exchange Commission (SEC) gave Infinity Q Diversified Alpha Investor approval to suspend redemptions and postpone the date of redemption payments beyond seven days. The reason for this change was cited as that the open-end mutual fund was unable to value certain assets held in the fund.
The SEC order found that Infinity Q Diversified Alpha Investor’s chief investment officer and company founder James Velissaris was tweaking the methodology for counting certain asset valuations, which raised doubts about the accuracy of the reported fair value of those fund holdings. Following this, Velissaris was relieved of his duties.
An alternative strategy fund like Infinity Q Diversified Alpha Investor is required to be able to redeem its shares at the net asset value (NAV) every business day. Investments like Infinity Q Diversified Alpha Investor are complex and not typically found in retail investors’ portfolios.
Infinity Q Diversified Alpha Investor is up 1% in 2021, and gained 5.9% last year, compared to the S&P 500 Index that is up 3.3% in 2021 to date and more than 16% last year.
Infinity Q Diversified Alpha Investor is proceeding with a liquidation plan and distribution to shareholders.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by their customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.