Kinetic Investment Group, LLC – SEC Files Complaint | Goodman & Nekvasil P.A. May Recover Investor Losses

According to the SEC:  

Since at least 2013, Kinetic Investment Group, LLC (“Kinetic Group”) and Michael Scott Williams (“Williams”) (collectively, “Defendants”) have raised at least $39 million from at least 30 investors in an unregistered fraudulent securities offering.

Defendants solicited investors to invest in Kinetic Funds I, LLC (“Kinetic Funds”), a purported hedge fund with a sub-fund structure that they managed. Defendants represented to investors that the largest sub-fund, Kinetic Funds Yield (“KFYield”), invested all of its assets in income-producing U.S. listed financial products hedged by listed options. Defendants also touted KFYield as a liquid investment.

In reality, Defendants diverted a substantial portion of KFYield investor capital to KCL Services, LLC d/b/a Lendacy (“Lendacy”), a private, start-up company owned by Williams. Lendacy was neither listed on a U.S. exchange nor capable of being hedged with listed options. Williams then directed Lendacy to make loans using KFYield assets to himself, entities controlled by him, and others.

Since at least 2015, Williams has misappropriated at least $6.3 million of Kinetic Funds’ assets to fund other business ventures and to pay for personal expenses.

Relief Defendants Kinetic Funds, Lendacy, Scipio, LLC (“Scipio”), LF42, LLC (“LF42”), El Morro Financial Group, LLC (“El Morro”), and KIH, Inc. f/k/a/ Kinetic International, LLC (“KIH”) (collectively, “Relief Defendants”) all received Kinetic Funds assets and proceeds of Defendants’ securities violations without any legitimate entitlement to the funds.

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

If you invested in Kinetic Funds, 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 in Kinetic Funds 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. 

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