If you are have suffered losses in the Infinity Q Diversified Alpha Fund (IQDAX), you may be able to pursue recovery of your losses through FINRA arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.

Infinity Q Diversified Alpha Fund (IQDAX) Investors Can Pursue Recovery of their Losses

If you have suffered losses in the Infinity Q Diversified Alpha Fund (IQDAX), you may be able to pursue recovery of those losses through FINRA arbitration or securities litigation due to the lack of due diligence on the Infinity Q Diversified Alpha Fund, or an inappropriate level of risk that you were exposed to in the Infinity Q Diversified Alpha Fund.

According to a recent Bloomberg report, the Infinity Q Diversified Alpha Fund (IQDNX), run by James Velissaris and Infinity Q Capital Management, recently announced that it froze redemptions of the fund, and that it may take “several days or weeks” to determine how to value swaps that account for about 18% of the fund’s reported assets after learning that James Velissaris had allegedly accessed and altered a third party’s valuation models for the instruments. This revaluation has led to the filing of a class-action lawsuit

Brokerage Firms Had a Duty to Conduct Proper Due Diligence on Infinity Q Diversified Alpha Fund

Securities broker-dealers have a regulatory duty to ensure that any investments they recommend to customers are suitable for them. This is especially important for brokerage firms selling complex investments like the Infinity Q Diversified Alpha Fund.

FINRA Rule 2111 (NASD Rule 2310) requires that securities broker-dealers to conduct a suitability analysis when recommending securities to investors that will take into account the investors’ knowledge and experience. The brokerage firm must make reasonable efforts to gather and analyze information about the customer’s other holdings, financial situation and needs, tax status, investment objectives and such other information that would enable the firm to make its suitability determination.

In addition to ensuring that securities are suitable for its customers on an individual level, FINRA Rule 2111 (NASD Rule 2310) also states that a securities broker must have reasonable grounds to believe that a recommendation to purchase, sell or exchange a security is suitable for the customer. This “reasonable-basis” suitability requirement means that in the context of complex investments like the Infinity Q Diversified Alpha Fund, or any of the Infinity Funds, brokerage firms have a duty to conduct due diligence on:

• The Infinity Q Diversified Alpha Fund and its fund managers;
• The business prospects of the Infinity Q Diversified Alpha Fund;
• The investment strategy of the Infinity Q Diversified Alpha Fund;
• The claims being made by the Infinity Q Diversified Alpha Fund; and
• The potential risks of investing clients in the Infinity Q Diversified Alpha Fund.

Brokers and brokerage firms “may not rely blindly upon the fund manager for information concerning the fund,” nor may it rely on the information provided by the fund manager lieu of conducting its own reasonable investigation.

Infinity Q Diversified Alpha Fund Investors May Be Able to Pursue Recovery of their Losses through FINRA Arbitration or Securities Litigation

Fortunately for investors, they may be able to recover their investment losses in the Infinity Q Diversified Alpha Fund through FINRA arbitration or securities litigation against the stockbroker, brokerage firm, or investment adviser that recommended the Infinity Q Diversified Alpha Fund to them.

If you are have suffered losses in Infinity Q Diversified Alpha Fund (IQDAX or IQDNX), you may be able to pursue recovery of your losses through FINRA arbitration or securities litigation. Please call Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your investment loss recovery options.

Kons Law Firm represents investors nationwide in securities arbitration and litigation matters. To learn more about the Firm’s securities litigation and FINRA arbitration practice, please visit www.investmentfraudattorneys.com.

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If you have suffered investment losses that you may believe is the fault of your financial advisor or stockbroker, you might be wondering what your options are. Contact our law firm today for a Free Consultation with an attorney for investors like you.

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