David Marchant is a friend and a top investigative journalist. When David’s Offshore Alert breaks a story, smart regulators sit up and pay attention. Recently Offshore Alert warned that Belvedere Management was involved in some nefarious activities. Now we have learned that the government of Mauritius has shut down two Belvedere Management companies, The Four Elements PCC and Lancelot Global PCC.
Although not a household name, Belvedere Management is huge and has its tentacles in every aspect of the financial world. Based in Mauritius, the company operates approximately 125 hedge funds and dozens of other businesses including wealth management and securities broker dealers. Irishman David Cosgrove, South African fund manager Cobus Kellermann, and Mauritian accountant Kenneth Maillard run the company.
We are amazed that mainstream media still hasn’t caught on to this breaking news. Regulators quickly reacting, however. In addition to the actions by Mauritius regulators, word is that Cayman regulators are taking action as well. If the stories are true, losses could be massive. The company claims it has $16 billion under management. In the words of Offshore Alert, this could be one of the biggest financial criminal enterprises in history.
Some of the allegations include:
- Funds that are “blatantly fraudulent”
- A $130 million Ponzi scheme in the Cayman Islands
- Investors that can’t redeem shares
- Inflated asset values
Investors that purchased directly through Belvedere Management may have to wait years to get back any losses. Those that purchased Belvedere related assets through stockbrokers might be able to recover from the brokerage firm directly.
It’s so early in the game that we simply don’t know many facts. If Belvedere Management is a Ponzi scheme, we suspect that Belvedere was only too happy to allow stockbrokers and others to sell their products.
There is a natural inclination to wait until facts are in before taking action. Unfortunately, we may never know all the facts and if the scheme is as massive as some say, many brokerage firms won’t have enough capital and insurance to cover claims. Those that take swift action have a better chance of recovery.
Brokerage firms can be responsible for losses because they have a duty to perform due diligence on the products they recommend. We believe there were enough red flags to deeply concern legitimate stockbrokers.
MahanyLaw is a full service fraud recovery law firm. We assist victims of Ponzi schemes, investment fraud and professional malpractice get back their hard earned money. If you have lost $100,000 or more in a Belvedere Management company or product, please give us a call. Most cases can be handled on a contingent or “success” fee basis.
MahanyLaw – America’s Fraud Recovery Lawyers