News SSB&R Files Class Action Against Lancelot Investment Management for Role in Petters Ponzi Scheme Shalov Stone Bonner & Rocco LLP 06/16/2009

 

Shalov Stone Bonner & Rocco LLP has filed a class action lawsuit on behalf of investors in Lancelot Investors Fund, Ltd. (the "Fund"), a feeder fund that invested the bulk of its members' assets in short-term promissory notes issued by Minnesota billionaire Thomas Petters and his affiliated companies. According to the complaint, the defendants, including the Fund's investment manager and advisor, allowed class members' money to be invested with Petters without first performing sufficient due diligence into the notes. As was later uncovered by federal investigators, the Petters notes were part of a massive Ponzi scheme devoid of any financial substance and, as a result, the Fund's investors collectively suffered tens of millions of dollars in damages. The complaint, which includes claims for fraud and breach of fiduciary duties, names as defendants Lancelot Investment Management, LLC; Gregory Bell; Thomas DeMaio; McGladrey & Pullen, LLP; and McGladrey & Pullen, Cayman.

If you would like more information about the Lancelot litigation, or if you have been the victim of similar misconduct involving a feeder fund that invested its assets in a Ponzi scheme, please contact Lee S. Shalov or Thomas G. Ciarlone, Jr., at (212) 239-4340.