07 Feb Timothy S. Demski and Walter F. Grenda — False and Misleading Statements to Clients
Timothy S. Demski and Scott Stephan Allegedly Developed an Untested Algorithm Composed of Day-trading ETFs
Walter F. Grenda, of Hamburg, NY and Timothy S. Dembski, of Lancaster, NY, allegedly made false and misleading statements to their clients, recommending investment in the Prestige Wealth Management Fund which was run by Scott Stephan, according to a recent SEC Complaint currently under review by attorneys Joe Peiffer and Jason Kane.
Timothy S. Dembski, in conjunction with Scott Stephan, who purportedly had no professional money management experience, allegedly developed an untested Algorithm, which consisted of day trading ETFs, the SEC reports.
What is more, the SEC also alleges that Walter F. Grenda also borrowed $175,000 from his clients to pay for business expenses, but it turned out that that he used the funds for personal expenses. The Peiffer Wolf securities lawyers are currently investigating Timothy S. Demski and Walter F. Grenda and their alleged false and misleading statements to clients.
Grenda’s and Dembski Clients Invested Combined $12 million in the Prestige Wealth Management Fund, which from April 2011 through December 2012 Lost 80% of Its Value
Walter F. Grenda and Timothy S. Dembski allegedly encouraged clients to invest a combined $12 million in the Prestige Wealth Management Fund, which from April 2011 through December 2012, lost over 80% of its value, according to a recent SEC Complaint being examined by attorneys Joe Peiffer and Jason Kane.
Walter F. Grenda and Timothy S. Dembski hired Scott Stephan in April 2007 to help with telemarketing, to make cold calls to potential clients, and to help arrange for seminars, the SEC notes. The SEC also reports that Stephan previously worked as a debt collector for auto loans and had personal connections with Dembski.
Finally, the SEC alleges that Grenda and Dembski purportedly had clients sell off variable annuities to invest in the fund, leading them to incur a combined $290,000 in surrender fees, in violation of their fiduciary duties as investment advisors.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of false and misleading statements, and are currently investigating Timothy S. Demski and Walter F. Grenda’s alleged investment scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Timothy S. Demski and Walter F. Grenda’s alleged investment scheme may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 585-310-5140.