Meyer Wilson

Recovering Losses Caused By Investment Misconduct

Former Wells Fargo Broker Mikhail Filshtinskiy Accused of Aiding a Hedge Fund Manager to Defraud Clients

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 January 2017.

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.

What is 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.

Related Posts:

Choose a Firm with Accolades:

  • Super Lawyers
  • Million Dollar Advocates Forum
  • Preeminent AV Peer Review Rated
  • Best Lawyers Lawyer of the Year
  • Best Lawyers Best Law Firm
  • The Best Lawyers in America
  • Avvo 10/10 Rating