Goodman & Nekvasil P.A., May Recover Investor Losses on DMS Funds – PETER R. KOHLI
Goodman & Nekvasil, P.A. has filed an arbitration claim against Trustmont Financial Group, Inc., seeking to recover monies that an investor lost on an investment in Marshad Capital Group, Inc. through Peter R. Kohli. Peter R. Kohli told our client that Marshad Capital Group Inc. was an enterprise that was “developing mutual funds” and that our client would be loaning money to the enterprise at 1.5%. Our client lost his entire investment of $83,000 in Marshad Capital Group, Inc.
In September 2016, the SEC filed a complaint against Peter R. Kohli, DMS Advisors, Inc. and Marshad Capital Group, Inc., alleging that Peter R. Kohli induced his customers and clients to invest in the DMS Funds using prospectuses and accompanying documents that contained misrepresentations that overstated the DMS Funds’ sophistication and ignored the key risk associated with these investments.
According to the complaint, from 2012 through 2015, Defendants Kohli, DMS Advisors, and Marshad, lied in four distinct ways to induce over 120 investors to invest at least $3.2 million in entities owned or controlled by Kohli. In 2012, Kohli, a registered representative of a broker-dealer, launched Relief Defendant The DMS Funds, which ultimately consisted of four emerging markets mutual fund series (collectively, the “DMS Funds”). According to the complaint, Kohli solicited his own customers and clients to invest in the funds using prospectuses and accompanying documents containing misrepresentations that overstated DMS Funds’ sophistication and ignored the key risk associated with these investments.
According to the complaint, this key risk was that DMS Advisors, and Peter Kohli, its principal, would be unable to pay the lion’s share of the funds’ expenses as promised, due to the absence of assets or income sufficient to meet such expenses. According to the complaint, as the funds floundered due to Peter Kohli’s extreme recklessness, Kohli engaged in three additional frauds in an effort to keep the funds afloat. First, Kohli made material misrepresentations in connection with the sale of warrants to purchase Marshad stock, another entity Peter Kohli controlled. Second, according to the complaint, Peter Kohli misappropriated investor money that he solicited for the purported purpose of making investments into one of the funds, and instead used the money to pay fund expenses. And third, according to the complaint, as the funds neared collapse, Peter Kohli lied to investors in connection with the sale of Marshad promissory notes in a desperate attempt to raise money to cover fund expenses and to delay the inevitable.
This SEC action against Peter R. Kohli followed on the heels of Peter R. Kohli’s discharge by his employer, Trustmont Financial Group, Inc., on April 29, 2015. According to Trustmont Financial Group, Inc., Peter R. Kohli violated written supervisory procedures in accepting a loan from a client.
If you invested in the DMS Funds or in Marshad Capital Group, Inc. or if you lost money on investments with or loans to Peter R. Kohli, you may be able to recover your losses from Trustmont Financial Group, Inc. This is because Trustmont Financial Group, Inc., had a duty to supervise Peter R. Kohli.
We would like to discuss the possibility of your retaining our firm to represent you in an arbitration action against Trustmont Financial Group, Inc., concerning Peter R. Kohli’s actions. 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 $170 million on behalf of victimized investors.
If you invested in the DMS Funds, or lost money on other investments with or loans with Peter R. Kohli, 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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