The US Securities and Exchange Commission (SEC) has charged a Florida-based Elm Tree Investment Advisors and its manager Frederic Elm with fraud.
According to the complaint filed in federal court in the Southern District of Florida, Elm’s unregistered investment advisory firm and the three funds misled investors and used most of the money raised to make Ponzi-like payments to the investors.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The regulator also alleged that Elm treated the funds as his personal piggy bank and used them to buy a $1.75m home, luxury automobiles, and jewelry, and to cover daily living expenses.
Elm’s wife, Amanda Elm, formerly Elmaleh, has been named as a relief defendant based on her receipt of investor monies.
SEC’s Miami regional office director Eric Bustillo said: "Elm misled investors about how he and his funds would use their money and about how much he charged them in fees. As a result, Elm was able to wrongfully take millions of dollars from investors without their knowledge."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
