Timothy Dembski, of Lancaster, New York, and Walter Grenda Jr., of Buffalo, New York, were named in a Financial Industry Regulatory Authority (FINRA) complaint alleging that they fraudulently induced customers to invest in a hedge fund, the Prestige Wealth Management Fund, LP.
The FINRA complaint alleges that Timothy Dembski and Walter Grenda Jr. led investors to believe that the Prestige Wealth Management Fund (Prestige Fund) was a growth fund and was based on a computer algorithm, which included risk protections and stop-losses, to limit investor losses in the hedge fund. However, FINRA alleged that the Prestige Fund was a speculative, aggressive investment, was not obligated to follow the computer algorithm, and lost over 80% of its value in its last full month! Mr. Dembski and Mr. Grenda allegedly recommended the Prestige Fund to investors with limited investment experience, who had never invested in hedge funds before, and who used their retirement assets to invest in the fund. Continue reading →