Fraud scheme centered on fund valuations exposes lack of oversight (IGNITES)

A Department of Justice and SEC case of valuation fraud shows how an absence of compliance and oversight leads to investor harm. Investors in the Infinity Q mutual funds allege they have lost millions of dollars due to improper valuations, inflated assets and performance data. Amy Lynch, FrontLine’s Founder and President, states that the case exemplifies why there are many points of oversight and supervisor that occur on a routine basis with a mutual fund. Now, adds Ms. Lynch, the litigators and SEC will need to determine the correct amounts for what should have been the funds’ redemptions and then find the assets, which will be challenging. See IGNITES (subscription required), “Fund Shop Charged with Fraud Faces Lawsuit”