Corporate & Securities Law

SNSFE Investigates The Nutmeg Group And The Gouldings

By James Eccleston

Shaheen, Novoselsky, Staat, Filipowski & Eccleston is investigating the Chicago area investment adviser, The Nutmeg Group, for defrauding clients. 

The SEC has charged The Nutmeg Group, owner and managing member Randall Goulding, and chief compliance officer David Goulding for misappropriating client assets, making misrepresentations to their clients, failing to comply with Nutmeg's custodial obligations, and failing to keep required books and records. 

According to the SEC's complaint, Northbrook, IL-based Nutmeg serves as the general partner or investment adviser to 15 unregistered investment pools and claims to have assets under management of more than $32 million.  Nutmeg and the Gouldings misappropriated more than $4 million in client assets by transferring them to third parties, and did not fully document the funds' investments, according to the SEC complaint. 

The SEC alleges further that they improperly commingled fund assets and cannot value the funds' holdings.  As a result, net asset and other investment values have been incorrectly reported to investors.  Nutmeg also has failed to keep required books and records or keep assets with qualified custodians, which has further put client funds at risk.

Investors who have invested with this group should feel free to contact attorneys at SNSFE.

Full post as published by FinancialCounsel on March 27, 2009 (boomark / email).