Did You Lose Money Investing in RMA Strategic Opportunity Fund, LLC?
Posted on Saturday, September 30th, 2017 at 8:02 am
Erez Law is currently investigating brokerage firms and financial advisors across the country who recommended investments in RMA Strategic Opportunity Fund, LLC, a pooled investment hedge fund that operated as a multi-million dollar Ponzi-like scheme.
According to a statement by the Department of Justice, U.S. Attorney’s Office, District of Massachusetts, it is alleged that Raymond Montoya, the hedge fund manager, told his investors that the fund was earning substantial returns when in fact, by 2014, the RMA Fund was sustaining substantial losses. It is alleged that the victims invested millions of dollars from personal savings and 401 (k) retirement plans to Montoya and RMA Strategic Opportunity Fund, LLC, which was to be used to invest in stocks and bonds. However, it is alleged that Montoya only invested a portion of their money, and diverted the rest to business and personal bank accounts, which he used for personal expenses such as luxury vehicles, travel, tuition for his children, and his son’s home mortgage, and to repay earlier investors.
According to the complaint, Montoya told investors RMA Strategic Opportunity Fund, LLC had about $4 billion in assets under management and used proprietary software that helped it predict stock price movements and was achieving positive results. In actuality, Montoya managed less than $150 Million, invested only a portion of his victims’ money and fabricated account statements for the fund, which was incurring losses by 2012, according to an article by Reuters.
Erez Law represents investors in the United States for claims financial advisors who recommended investments in RMA Strategic Opportunity Fund, LLC. If you 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.