The Securities and Exchange Commission is investigating whether an Atlanta-based hedge fund is violating federal securities laws by guaranteeing to its investors that they won’t lose money. Statim Holdings Inc., headed by Joseph Meyer, Jr., is the parent company for Arjun LP, a hedge fund that previously ranked eighth among hedge funds with between $250 million and $1 billion in assets.
According to Meyer, the hedge fund’s computer-based approach is so foolproof that he guarantees that individuals who invest in Arjun will never lose any of their principal. “I’ve got a spreadsheet that did the calculations,” Meyer says of his system. “And then I just got coders to code it, so that the computer’s coming up with it, ’cause I can’t, I couldn’t, manually do something like that.” However, according to Bloomberg News, Statim is under investigation in Georgia after the company did not submit to an audit. The Georgia Secretary of State launched a probe in 2015 after it discovered “multiple irregularities” involving Statim and its Arjun hedge fund.
Federal law allows for private citizens to report a violation of securities laws, and in certain circumstances, be eligible for a reward. Under the SEC whistleblower program, if an individual provides the SEC with original information concerning a violation of federal securities laws leading to an enforcement action that results in over $1 million in monetary sanctions, that individual is eligible to receive an award of 10% to 30% of the amount collected. If you have evidence that an entity is violating federal securities laws and you want to discuss whether you may be eligible for an award under the SEC whistleblower program, don’t hesitate to contact us.