Case studies
How recovery value gets found
Each matter below involved significant investor losses and a documented LOFFCO role. We set out the public record and the questions it raises for an underwriter. Client and counterparty confidences stay confidential.
U.S. Attorney, S.D.N.Y.
$120M+
Criminal conviction · Sentenced April 2022Investment adviser fraud at International Investment Group
The managing partner of a Manhattan investment adviser was sentenced to 12 years for a decade-long scheme that mismarked loan assets and used new sales to pay earlier investors.
| Forum | U.S. District Court, Southern District of New York |
|---|---|
| Conduct period | Approximately 2007 to 2019 |
| Reported loss | More than $120 million |
| Outcome | 12-year prison sentence and three years of supervised release |
| Investor base | Institutional investors, including pension funds, hedge funds and insurers, and retail mutual fund investors |
What the record shows an underwriter
- Valuation fraud hides in marks, not in cash. Testing reported asset values against underlying loan documents isolates the true loss.
- A long conduct period widens the pool of responsible parties, which can include service providers, counterparties and purchasers of the assets.
- Recovery sources extend beyond the principal defendant to fund assets, insurance and third parties, often across more than one jurisdiction.
SEC Litigation Release 25558
$600M
SEC civil action · AllegationsReal estate offering: National Realty Investment Advisors
The SEC charged a New Jersey real estate sponsor and four executives with operating a Ponzi-like scheme that raised about $600 million from roughly 2,000 investors.
| Forum | U.S. District Court, District of New Jersey |
|---|---|
| Filed | October 2022 |
| Amount raised | Approximately $600 million from about 2,000 investors |
| Allegations | Diversion of investor funds to pay earlier investors and personal expenses; misstated financial results |
| Related proceeding | The sponsor and its fund filed for Chapter 11 in June 2022 |
What the record shows an underwriter
- When the issuer is already in Chapter 11, recovery runs through the estate, so claim priority and estate litigation become central to value.
- Diverted funds leave a record. Tracing use of proceeds identifies recipients and potential avoidance claims.
- A large, dispersed investor base supports aggregation and makes cost-efficient case management essential.
SEC Litigation Release 26413
$112M
SEC civil action · AllegationsRetail brand notes: Retail Ecommerce Ventures
The SEC charged the co-founders and COO of an online retail brand holding company with misleading investors in eight note offerings that raised about $112 million.
| Forum | U.S. District Court, Southern District of Florida |
|---|---|
| Filed | September 2025 |
| Amount raised | Approximately $112 million across eight portfolio company offerings |
| Allegations | Misstatements about profitability and safety; about $16.1 million allegedly misappropriated for personal use; Ponzi-like payments |
| Instruments | Unsecured notes marketed with annualized returns of up to 25% |
What the record shows an underwriter
- Multiple issuers under one sponsor require entity-by-entity analysis of solvency, intercompany transfers and priority.
- Brand and intellectual property assets can carry recoverable value even when operating businesses do not.
- Advertised returns far above market rates are a documented warning sign and frame the damages theory.
LOFFCO had a documented role in each matter shown. Figures, status and descriptions come from the cited government releases; SEC matters described as allegations have not been adjudicated. Past matters do not indicate future results.
Confidential case review
Start with a nonprivileged overview
Send a short summary of the dispute, the parties and the capital need. We answer every submission within five business days. Substantive materials come later, once a confidentiality framework is in place.