Investor Lawyers Blog
Securities fraud attorneys are currently investigating claims on behalf of customers of Berton Hochfeld, following the announcement that Hochfeld has been charged with securities fraud and wire fraud. Hochfeld, the 66-year-old manager of Hochfeld Capital Management LLC, allegedly stole over $1 million from investors. According to an article in Bloomberg, Hochfield was arrested the morning of November 9, 2012 at his home in Stamford, Connecticut.
Hochfeld Capital Management LLC had an office at Park Avenue in New York that reportedly functioned as a Heppelwhite Fund general partner. According to the allegations against Hochfeld, he stole investor funds for his own use during the period of April 2011 to October 2012. The complaint also states that a private placement memorandum for the Heppelwhite Fund stated it would not purchase debt obligations issued by, or make loans to, Hochfeld Capital Management and/or principals of the LLC. Furthermore, according to the sworn complaint by U.S. Federal Bureau of Investigation Special Agent Michael Howard, in monthly statements provided by Hochfeld, the value of the fund was falsely inflated, concealing his withdrawals from investors. Private placement fraud like this is routinely investigated by stock fraud lawyers in order to recover stolen funds from investors.
Customers of Berton Hochfeld and/or Hochfeld Capital Management LLC who were customers of the firm during the time period stated above are encouraged to contact a securities fraud attorney as soon as possible. If convicted of both charges, Hochfield could face as many as 40 years in prison.
“Berton Hochfeld and others like him who allegedly use their businesses to lure and deceive investors and then steal their money will not be tolerated by this office,” the U.S. Attorney for the U.S. District Court for the Southern District of New York (Manhattan) stated.
If you suffered significant losses as a result of your investment with Berton Hochfeld, you may be able to recover your losses through Financial Industry Regulatory Authority arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.