Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities brokers Timothy S. Dembski and Walter F. Grenda. FINRA has announced that Messrs. Dembski and Grenda received a lifetime ban from the securities industry for lying about a hedge fund they were selling.
According to FINRA, Timothy S. Dembski and Walter F. Grenda told potential investors that the hedge fund in question, the Prestige Wealth Management Fund LP, was a growth fund that in reality lost 80 percent of its value in the last month it traded.
At the time of the fraud, Dembski and Grenda were employed with Mid Atlantic Capital Corporation in Buffalo, New York. FINRA’s investigation found that Dembski and Grenda made material misrepresentations and omissions to lead investors to believe the hedge fund was based on a computer algorithm that automatically included risk protections and stop-losses to limit losses in the fund. According to FINRA, the fund was a highly speculative investment, the fund’s chief investment officer had complete control over the investments made, and it was not obligated to follow the computer algorithm.
Dembski and Grenda distributed marketing information saying the chief investment officer worked in the financial services industry for more than 14 years, co-managed a portfolio of more than $500 million and was a vice president of investments for a New York based investment company, all of which were false.
If you or someone you know has a complaint or been defrauded by Timothy S. Dembski, Walter F. Grenda and/or Mid Atlantic Capital Corporation, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.