News SSB&R Files Suit on Behalf of Investors in Stewardship Credit Arbitrage Fund, LLC Shalov Stone Bonner & Rocco LLP 06/18/2009

 

Shalov Stone Bonner & Rocco LLP has filed a class action lawsuit on behalf of investors in Stewardship Credit Arbitrage Fund, LLC ("SCAF" or the "Fund"). Among other things, the complaint alleges that the Fund and the other named defendants--Stewardship Investment Advisors, LLC; Acorn Capital Group, LLC; Ernst & Young LLP; Ernst & Yound Ltd. Bermuda; Pinnacle Fund Administration, LLC; Marlon Quan; and Gustav E. Escher, III--were negligent and violated their fiduciary duties to the Fund's investors by pledging the majority of SCAF's assets to the purchase of short-term promissory notes issued by Minnesota billionaire Thomas Petters and his affiliated companies, without first performing sufficient due diligence into the notes. As was later uncovered by federal investigators, the Petters notes were part of a massive Ponzi scheme devoid of any financial substance and, as a result, the Fund's investors collectively suffered tens of millions of dollars in damages.

If you would like more information about the Stewardship litigation, or if you have been the victim of similar misconduct involving a feeder fund that invested its assets in a Ponzi scheme, please contact Lee S. Shalov or Thomas G. Ciarlone, Jr. , at (212) 239-4340.