TCA Fund Management Group Lawsuit

The Securities and Exchange Commission (SEC) is suing TCA Fund Management Group, a Florida investment firm, cited in a January report by NBC for improperly inflating the value of its portfolio investment trust fund. The SEC’s lawsuit, filed Monday, accuses the TCA of exaggerating the value of all its funds by more than $150 million since last fall, according to a news release from the agency. According to the SEC lawsuit, “TCA is the kind of investment company that lends to small and medium-sized businesses that could not secure financing elsewhere,” as quoted in the NBC News report in January.

Why Did the SEC File TCA Fund Management Group Lawsuit?

Reuters reported that TCA employees had filed several whistleblower complaints to the SEC over the TCA’s accounting practices, according to a person familiar with the situation.

Based in Aventura, Florida, TCA began operations in 2011 and is overseen by Robert Press. Press is not named as a defendant in the SEC’s lawsuit, the agency’s press release said. The SEC’s civil suit, filed Monday, alleges that TCA fraudulently recorded revenue it was unlikely to receive and inflated the value of its funds by more than $150 million since last fall. The SEC said some of T CA’s funds posted negative returns in the first half of the year instead of properly reporting their trades, and the SEC says it’s reported $500 million in assets falsely told investors that the fund’s holdings were increasing in value each month. It also filed false reports with the SEC about the performance of some TCA funds, the lawsuit said.

NBC News reported that TCA has increased its portfolio value by as much as $1.5 billion, or more than 50 percent, in recent years.

Carl Schoeppel, a lawyer representing TCA, did not immediately return an email seeking comment on the SEC’s lawsuit against the company and its co-founder, David Schoep.

In January, NBC News reported that three employees filed a whistleblower complaint with the SEC alleging that TCA’s accounting practices were fraudulent and that the fund’s assets were inflated. Investors subscribe and redeem based on net assets, according to the company’s website.

Investors Seeking to Recover Losses From TCA Fund Management Group

Haselkorn and Thibaut, a national investment fraud law firm, is currently investigating TCA Fund Management Group.  The law firm is headquartered in Palm Beach Beach, Florida, but has offices in NY, Texas, North Carolina, and Arizona. Investors are encouraged to contact them for a free case consultation to explore options to recover losses by calling 1 888-628-5590 or visiting their website at InvestmentFraudLawyers.com.