The Securities and Exchange Commission (“SEC”) has charged Atlanta, Georgia based investment advisor Joseph A. Meyer, Jr. and his company, Statim Holdings, with investment fraud of a private fund they manage.
According to the SEC allegations, between August 2009 and at least June 2018, Statim Holdings, Inc. and Meyer defrauded Arjun, L.P., a private fund they managed, by telling investors that in return for giving up substantial portions of their profits, one class of investors would be protected from any loss of principal and two other classes of investors would receive guaranteed rates of return on their investments.
Meyer had allegedly promised these investors that their profits would be transferred to Statim’s capital account and used to ensure guaranteed returns during periods when the Fund incurred losses or lacked sufficient profits to pay the required returns.
Instead, Meyer is alleged to have withdrawn from the Fund substantially all of the investors’ profits as they were generated and used them to pay his own living expenses. Meyer also allegedly had Arjun’s fund administrators occasionally record a receivable due from Statim on Arjun’s financial statements to deceive investors into thinking that Statim was making good on its guarantees and loss protection. Meyer allegedly paid down the receivable on occasion, but by borrowing money from the Fund. The receivable at times grew as high as $2.9 million, or 11.5% of the Arjun Fund’s net asset value.
The SEC charged Meyer with breach of fiduciary duty and fraud, misrepresenting Arjun’s portfolio holdings, its financial performance, and its assets under management and employed deceptive means to discourage investors from redeeming their investments.
If you or someone you know lost money as a client of Joseph A. Meyer, Jr. and Statim Holdings, Inc. of Atlanta, GA due to unsuitable, misrepresented, or unauthorized transactions, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.