NY AG Sues Dean Mustaphalli for Defrauding Elderly Investors
The New York Attorney General has filed a lawsuit against Dean Mustaphalli and several companies under his control for making unsuitable investments in highly speculative and risky securities, costing his elderly investors millions in losses.
Of the over $11 million invested into his hedge fund, Mustaphalli lost $10 million because of his risky and unsuitable trading strategy.
In 2010, after repeatedly being placed on heightened supervision because of numerous customer complaints, Mustaphalli left his former employer and opened a hedge fund. According to the complaint, Mustaphalli targeted elderly individuals who had very little prior investment experience to invest in the fund. Claiming that fund would be better for clients, Mustaphalli moved assets from investors who had conservative portfolios into his fund and then proceeded to invest in speculative options and highly leveraged securities.
In total, of the over $11 million invested into his hedge fund, Mustaphalli lost $10 million because of his risky and unsuitable trading strategy. Additionally, he allegedly misappropriated at least $100,000 of investor funds to pay for his own personal expenses.
If you have suffered significant financial losses as a result of unsuitable investments or other broker misconduct, the attorneys of the Business Trial Group may be able to help. Backed by the largest Plaintiff’s law firm in the country, our clients pay no upfront fees or retainers, and we only receive a fee if we successfully recover compensation on your behalf.
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