Donald Laguardia – Complaint Filed by SEC

Donald Laguardia – Complaint Filed by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses

According to SEC Allegations

Beginning in at least 2013 and continuing to at least May 2017, LaGuardia, who controlled the unregistered investment adviser L-R Managers, LLC (“L-R Managers” or the “Firm”), perpetrated a three-pronged scheme to defraud private investment funds, which were managed by the Firm, and the funds’ investors. First, LaGuardia misappropriated approximately $2.62 million from the LR Global Frontier Master Fund., Ltd., and two feeder funds (collectively, the “Frontier Funds” or the “Funds”), which ostensibly were formed to invest in frontier markets and concealed part of this misappropriation through a sham receivable and promissory note. Second., LaGuardia and the Firm. misstated, or directed others to misstate, the Net Asset Value (“NAV”) and returns of the Funds through other fraudulent accounting devices. Finally, LaGuardia and L-R Managers made material misrepresentations about the Funds’ audits, expenses and performance to investors and prospective investors.

As the first part of his fraudulent scheme, LaGuardia transferred or directed others to transfer approximately $1.25 million from the Funds’ accounts to L-R Managers’ bank account and to another account to repay a debt of L-R Managers. LaGuardia then disguised the misappropriation and inflated the NAV of the Funds by directing the creation of a receivable “due froze” L-R Managers and a promissory note also “due from” the Firm.

In addition, LaGuardia diverted or directed others to divert approximately $1.37 million designated as an investor’s Frontier Fund subscriptions to L-R Managers’ bank account and to a Fund account of an entity affiliated with L-R Managers, rather than in an account for that investor. LaGuardia used the money to pay for unauthorized firm and personal. expenses, including $300,000 which was used to pay for his home renovations.

Of the approximately $2.62 million that LaGuardia misappropriated, he directed approximately $590,000 to himself: the majority of this money was transferred to his bank account and to a vendor for his personal benefit. The remainder of the money that LaGuardia misappropriated was used to pay L-R Managers’ expenses, such as rent and salaries, which, pursuant to the terms of the Funds’ offering documents, should have been paid by the Firm.

As a second part of the scheme, in addition to the misappropriation of approximately $2.62 million, LaGuardia directed that more than $830,000, amounts that had been recorded as Fund expenses, be reversed and. accounted for as another receivable “due from” L-R Managers, further artificially inflating the NAV of the Funds. Also, beginning in 2016, LaGuardia and the other Managing Principal of L-R Managers decided to increase the Funds’ monthly income by the amount of a hypothetical performance gain or ‘`true-up” reflecting the difference between the portfolio as invested. and the portfolio as it had previously been invested. These hypothetical gains were also recorded as a receivable “due from” L-R Managers. By September 2016, these hypothetical gains had accumulated to more than approximately $400,000 and served to artificially inflate the NAV of the Funds.

In total, as of September 30, 2016, the amount “due from” L-R Managers to the Funds amounted to approximately $2 million, which was approximately 74% of the purported value of the Funds’ total NAV of approximately $2.7 million.

Investors May Recover their Losses with Goodman & Nekvasil, P.A.

If you invested, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors. 

All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years. 

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.

If you incurred investment losses 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.  

Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange

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