Jason Rhodes, Co-founder of Stamford Hedge Fund Sentinel Growth Fund Management, Allegedly Ran a $19.6 Million Ponzi-like Investment Scheme
Jason Rhodes, co-founder of Stamford hedge fund Sentinel Growth Fund Management, allegedly ran an investment scheme which defrauded investors out of $19.6M, according to Reports from the U.S. Attorney in the Southern District of New York under review by investor rights attorney Alan Rosca.
Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to Jason Rhodes’ alleged investment scheme. Investors who believe they may have lost money in activity related to Jason Rhodes are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Rhodes allegedly participated in a Ponzi-like scheme to purportedly defraud investors by using their funds for his own personal use and to make repayments to earlier investors, a telltale sign of Ponzi scheme, the Reports note.
In sum, Rhodes and his co-conspirators allegedly defrauded roughly 25 investors out of a total of $19.6 million, the Reports state.
Rhodes and his Co-conspirators Allegedly Solicited Investments in a Hedge Fund by Purportedly Making False Representations to Investors
Rhodes and his purported co-conspirators, beginning in at least November 2013 and roughly through December 2016, allegedly solicited investments in a hedge fund by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes – namely, buying securities, according to the aforementioned Reports.
Rhodes and his purported co-conspirators allegedly represented that their funds would be used for legitimate, specified, investment purposes – most notably, buying securities, the Reports note.
For example, Rhodes and a co-conspirator allegedly falsified an investor account statement using a computer software program to hide the fact that most of the $4.2 million the investor had sent to the hedge fund had been reportedly misappropriated, the Reports note.
Said misappropriations allegedly included through transfers of the funds to, among other places, the personal bank accounts of Rhodes and a co-conspirator, and to previous investors, the Reports state.
Finally, after said investor allegedly discovered the fraudulent nature of said account statement, Rhodes, working with others, reportedly obtained funds from yet another investor in order to make payments to this previous investor, according to an SEC Complaint.
Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Jason Rhodes’ alleged investment scheme. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of Jason Rhodes’ alleged investment scheme may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
