888-840-1571

National Investment Fraud Lawyers

¿Perdió en bonos y fondos de Puerto Rico?

Prophecy Asset Management, L.P. Investment Loss Options

Posted on Monday, April 19th, 2021 at 6:59 pm    

Prophecy Asset Management

Did you suffer investment losses due to investments in Prophecy Asset Management, L.P. at the recommendation of your investment broker? It is alleged that the firm may have lost hundreds of millions of dollars over the past few years.

Prophecy Asset Management, L.P. is a New York-based investment management firm, owned and operated by Jeffrey Spotts. The investment management firm provides discretionary investment advisory services to private investment funds. According to its website, “Prophecy allocates the funds’ investments to a diverse mix of established and emerging portfolio managers.” 

Prophecy Asset Management, L.P. utilities sub-advisors to manage its capital. There are allegedly some concerns about Prophecy Asset Management, L.P.’s selection of sub-advisors, including Brenda Smith, who was recently charged with fraud by the Securities and Exchange Commission (SEC) for her role in perpetuating a Ponzi scheme. 

According to public records, in July 2020, two investment funds that invest with the investment management firm filed a complaint in Delaware Chancery Court against Prophecy Asset Management, L.P., which included Inspection of Books and Records against Prophecy Asset Management, L.P. and its managers. The lawsuit alleged that the investment funds needed access to Prophecy Asset Management, L.P.’s books and records, alleging that Prophecy Asset Management, L.P.  cannot account for money the investment funds invested in Prophecy Asset Management, L.P. The investment funds also alleged that Prophecy has kept limited partners in the dark; there is evidence of wrongdoing, breach of duty or mismanagement by Prophecy Asset Management, L.P.; and the investment management firm committed violations of concentration and risk limits. 

It is alleged that Jeffrey Spotts had improper financial relationships with Smith, which led to Prophecy Asset Management, L.P.’s investment in her fund.

First Landing, an investment fund formed in 2015 and is managed by Vantage Consulting Group, Inc., which is a Virginia-based SEC-registered investment adviser firm. First Landing is a feeder fund, which was formed solely for the purpose of investing all of its investable capital in Prophecy Asset Management, L.P.

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 its 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.