London cops raiding a Belvedere Management related entity last month and arresting 13 employees… The government of Mauritius freezing two other Belvedere funds, Four Elements PCC and Lancelot Global… Brighton SPC fund reportedly suspending operations… A prominent industry publication labeling flagship fund, Kijani Commodity, a Ponzi scheme. Something is going on at Belvedere Management and it isn’t pretty.
While Belvedere continues to deny any wrongdoing, the evidence and allegations continues to mount. Today, we read a post in a South African paper from a person claiming to be a victim. In his own words,
“I for one am delighted to see the sewer lid finally being lifted on Belvedere. I am one of the unlucky ones who saw several 100’s of thousands of dollars of my pension disappear into the Four Elements abyss. It has been frozen for a long time now and almost impossible to get any sensible information on the investments that were sunk into BKOne. It seems quite incredible how reckless the investments were and leads one to believe a long time ago this was a very suspicious fund.”
The Naked Capitalism website claims Belvedere Management leader David Cosgrove had prior regulatory run-ins when he “single handedly collapsed” a South African company that was reportedly helping its clients illegally ship money offshore. That site also describes Cosgrove as a “high-pressure salesman who considers laws and regulations the same way SA taxi drivers view traffic lights.”
Finally, CNBCAfrica reports that at least one large brokerage firm claims that its clients are unable to redeem shares in Belvedere’s Strategic Growth Fund.
We are always cautious about reporting potential Ponzi schemes without knowing more facts. Unfortunately, in many cases finding those facts can take years. Given the growing evidence, however, it’s probably time for investors to plan an immediate exit strategy and liquidate (if that even remains an option).
We suspect that many who unsuccessfully attempt to liquidate their holdings will face the same problems encountered by others. No information and no money usually mean that the scheme has collapsed.
For those who invested through a stockbroker or other professional, the news may be better. Depending on how investors learned of the fund, it may be possible to pursue the brokerage firms and investment advisers who sold Belvedere Management funds. If the media is correct, this could be a $16 billion Ponzi scheme. If true, investors should look to bring action now instead of waiting. There may not be enough “deep pockets” to pay everyone.
If you lost $100,000 or more in Belvedere Management and invested through a U.S. brokerage firm, we may be able to assist. Most fraud recovery cases can be handled on a contingent or “success” fee basis. For more information, contact attorney Brian Mahany at or by telephone at (414) 704-6731 (direct). Initial consultations are always no fee and no obligation.
MahanyLaw – America’s Fraud Lawyers