Legal Question in Investment Law in Washington

Hi. I am looking for some help regarding trading futures by a non-authorized fund and recovering losses (see below). Any ideas or pointers would be greatly appreciated.

I've been following a futures trader online for quite some time on social networks, his blog, etc. A while ago, he sent out a survey to his subscribers. One of the questions was if people would be interested in managed funds (i.e., him managing other peoples accounts for trading futures). I said I would be. Several months later he sent an email out saying that his fund is taking on new accounts. Min investment 250k. Fee is 30% of profits.

Several weeks into the operations, it became apparent that he is not set up as an authorized fund to trade futures (or anything else for that matter). He did not test the platform and was basically using investors' fund to test his ability to run a managed fund. I also discovered that I was either the 1st or 2nd person to ever invest with him. Bottom line - he was not set up at all to take funds, he is not an RIA or certified in any other way.

Fast forwarding: 2 months into it I pulled the plug after incurring ~25k in losses.

Since I now realize that he is not authorized and/or registered to run a fund, I want to go after him to recover losses. He is in WA state. His fund (which I think is a sole proprietorship) is in DE.

Any idea how to take it from here? Any legal advice? Know where I can find someone that can help with the legal side in WA state?


Asked on 5/06/11, 11:12 am

1 Answer from Attorneys
Andrew May May Law, PC

Dear Sir or Madam,

I am happy to speak to you about your situation. Did he provide you with written documents before you invested with him?

I focus my practice on securities and commodities law and used to do nationwide defense for several "wire house" Fortune 500 companies. I used to prosecute these debit cases for several FCMs at a nationally known futures legal boutique firm. I have also continued my studies and am a few credits shy of receiving my L.L.M. (Masters of Law) in financial services law.

I encourage you to seek legal representation before an limitations period runs and bars your claim. You may only have 1 year to pursue him. You can reach me at [email protected] or (847) 675-1052.

Please feel free to check out our website at www.maylawpc.net for more information.

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Answered on 5/22/11, 2:05 pm


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