Mikhail Filshtinskiy, a former Wells Fargo broker who was suspended by
FINRA in 2016, is the subject of a pending arbitration relating to allegations
that Filshtinskiy aided a hedge fund manager to defraud the customers.
The claimants in that arbitration have alleged damages of over $8.6 million.
Another previous customer dispute involving allegations that Filshtinskiy
made unsuitable investment recommendations in a hedge fund settled in
He was registered with Wells Fargo from 2010 to May 2014. Prior to that,
he worked at Chase Investment Services in Brooklyn, New York. According
to his FINRA report, Wells Fargo discharged Filshtinskiy for “loss
of management confidence” involving “certain activities undertaken
for the purpose of meeting enhanced compensation goals.” His FINRA
suspension was lifted in November 2016, but he remains unregistered with
any broker dealer.
Hedge Fund Fraud?
Hedge funds are minimally-regulated investment partnerships. The assets
can be put into many investments, including some that are very high risk.
Managers get a percentage of the return, but the light regulation allows
brokers and hedge fund managers to make overblown claims about the rates
of return to investors.
Investors may fall for these risky investments after brokers mislead them
about the risks. Hedge fund fraud occurs when brokers make false or misleading
statements about the investment or even dupe their clients into an investment
scam. Unfortunately, the lack of regulation of hedge funds makes it difficult
for investors to realize they are being duped until it is too late.
Investors should remember, however, that even though hedge funds are not
subject to SEC-mandated reporting rules, their broker and the hedge fund
manager still have a duty to provide complete and accurate information
about the fund to potential investors. They can still be found liable
for investment fraud if they fail to provide that information and the
investor suffers a loss.
An experienced attorney can help investors who are victims of hedge fund
fraud. If you were a client of Mikhail Filshtinskiy or suspect that you
have experienced hedge fund fraud,
contact Meyer Wilson’s attorneys to evaluate your case today.