New York (HedgeCo.net) – Hartline Investment Corp is under fire for recommending a $550 million Florida hedge fund that is now subject to lawsuit filed by the SEC. Five investors followed the advisers advice and put $11.6 million into the failing hedge fund.
Lead plaintiff Marsha Serlin claims that William Hart advised her to invest in an LP called Founding Partners Stable Value Fund I and II, Courthouse News reports.
Serlin claims Hart told her and the co-plaintiffs that the hedge fund was a great investment and very difficult to get into, but that he was a good friend of William L. Gunlicks (president, founder, CEO and sole shareholder), and would be able to get the plaintiffs in as well.”
Serlin calls it a case of crony capitalism, “Defendant Hart admits to having a 30-year friendship and professional relationship with William Gunlicks. This relationship has been highly profitable for Hart and was incentive for him to breach his fiduciary duty and other duties complained of herein.”
The plaintiffs seek $11.6 million in damages for breach of fiduciary duty, negligent misrepresentation and fraud, according to Courthouse News Services.
Alex Akesson
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