Rusty Tweed - Financial Advisor Rusty Tweed Charged with Fraud by the SEC
Goodman & Nekvasil P.A, May Recover Your Investment Losses | Rusty Tweed - Financial Advisor Charged Rusty Tweed Charged with Fraud by the SEC
Rusty Tweed aka Robert Russel Tweed CRD #2339324
Rusty Tweed has been licensed with Cabot Lodge Securities, LLC since 2015. Rusty Tweed was previously licensed with Concorde Investment Services, LLC from August 2011 to November 2015. On October 2, 2017, the SEC filed an action alleging that Tweed Financial Services, Inc., (“TFSI”), an investment advisory firm in California, and its owner, defendant Robert Russel Tweed (“Rusty Tweed”), defrauded their clients by misleading them about how their money had been invested and how poorly those investments were performing.
The SEC alleges that in 2008, TFSI and Rusty Tweed formed and managed an investment fund, Athenian Fund, L.P. (“the Athenian Fund”), as a “feeder” to invest in a specific, unrelated fund that purported to employ a quantitative stock trading strategy. According to the SEC, by 2010, the defendants had raised approximately $1.7 million from 22 investors, some of whom had more than one account in the fund. According to the SEC, although they initially invested this money in the quantitative stock trading strategy fund specified in the offering documents, TFSI and Rusty Tweed later moved the investors’ money into a completely different fund, the Quantitative Analytics Master Fund (“QAMF”), which was operated by a business acquaintance of Rusty Tweed’s.
The SEC alleges that in October 2010, Rusty Tweed learned that approximately 40% of Athenian Fund’s investment in QAMF had not been invested in any stock at all, but was instead purportedly tied up in a one-year loan to a third party. According to the SEC, Rusty Tweed then asked QAMF’s manager to return all of the money that the Athenian Fund had invested in QAMF, but obtained only that portion, approximately 40%, that had not been loaned to the third party. According to the SEC, the defendants then caused the Athenian Fund to invest a portion of that returned capital in a software business run a friend of Rusty Tweed’s.
The SEC alleges that neither of these investments—QAMF or the software business—were profitable. The SEC alleges that by 2012, Rusty Tweed was on clear notice that the purported promissory note held by QAMF was uncollectible, and the funds had been further conveyed to invest in a gold mining venture in Ghana. According to the SEC, in 2012, Rusty Tweed also learned that the QAMF manager had been indicted for bank fraud. And by 2013, according to the SEC, Rusty Tweed knew that the software business had filed bankruptcy. According to the SEC, these investments, therefore, should have been written down, and eventually written-off.
The SEC alleges that rather than notify the Athenian Fund’s investors of the change in investment strategy and the losses on those investments, TFSI and Rusty Tweed continued to send quarterly account statements to the Athenian Fund’s investors falsely claiming flat or positive income and returns on these underperforming investments. The SEC alleges that TFSI and Rusty Tweed also concealed the fact that Athenian Fund assets were held in illiquid, unprofitable investments when it allowed some investors to receive full redemptions based on the inflated value of the Athenian Fund’s assets.
The SEC alleges that by engaging in this conduct, TFSI and Rusty Tweed violated Section 206(4) of the Advisers Act, 15 U.S.C. §80b-6(4), and Rule 206(4)-8, 17 C.F.R. §275.206(4)-8, thereunder. According to the SEC, in the alternative, Rusty Tweed aided and abetted TFSI’s violations of those provisions.
If you lost any money on investments with Rusty Tweed while Rusty Tweed was employed with Cabot Lodge Securities, LLC and/or Concorde Investment Services, LLC, you may be able to recover your losses from Cabot Lodge Securities, LLC and/or Concorde Investment Services, LLC. This is because Cabot Lodge Securities, LLC and Concorde Investment Services, LLC had a duty to supervise Rusty Tweed.
If you lost money on investments with Rusty Tweed and believe that the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against Cabot Lodge Securities, LLC and/or Concorde Investment Services, LLC concerning Rusty Tweed’s conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $300 million on behalf of victimized investors. If you lost money on investments with Rusty Tweed and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
Keywords: Robert Russel Tweed, Rusty Tweed, Tweed, FINRA, Concorde Investment Services, Cabot Lodge, SEC, Fraud, Attorney, Broker, Brokerage, Firm, Brokerage Firm, Invest, Lawyer, Securities Lawyer, Goodman and Nekvasil, Nekvasil, Goodman, Investor, Investment, Financial, Financial Services, SecuritiesBack to Blogs