James D. Sallah, Esq.
Jeffrey C. Schneider, P.A.
Patrick J. Rengstl, Esq.
Counsel for Corporate Monitor
PAYTON & ASSOCIATES, LLC
LEVINE KELLOGG LEHMAN SCHNEIDER + GROSSMAN LLP
Attorneys at Law
Telephone: (305) 372-3500 x23
The Corporate Monitor has filed his Tenth Report, which summarizes the case from April through the present. The link to the Tenth Report is below for review.
The United States of America, through the Fraud Section of the Criminal Division of the United States Department of Justice and the United States Attorney’s Office for the Middle District of Florida, has filed criminal charges against Gignesh Movalia relating to OM Global. Mr. Movalia has signed a Plea Agreement for one count, which charges him with investment adviser’s fraud in violation of 15 U.S.C. § 80b-6. The elements of the criminal charge are: (i) Mr. Movalia is an investment adviser regarding investments in securities; (ii) Mr. Movalia used the mail or interstate commerce to defraud investors; and (iii) Mr. Movalia did so knowingly and willfully. The charge carries a maximum term of imprisonment of five (5) years.
The plea date, on which the Court will accept or reject the Plea Agreement, is August 13, 2015. If the Court accepts the plea, a sentencing hearing will then be scheduled. It is anticipated that a sentencing hearing would occur a few months after the August plea date. Links to the Plea Agreement and the Information charging Mr. Movalia are below.More News
IN THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT
IN AND FOR MIAMI-DADE COUNTY, FLORIDA
CASE NO.: 13-18620 CA 13
GIGNESH MOVALIA and
OM GLOBAL INVESTMENT FUND LLC,
Plaintiff Chirag Amin sued Defendants Gignesh Movalia (“Mr. Movalia”) and OM Global Investment Fund LLC (“OM Global”) (collectively, “Defendants”) for an injunction, accounting and appointment of a corporate monitor. Plaintiff also moved for the appointment of a corporate monitor because OM Global was purportedly suffering from corporate mismanagement, such as the failure to operate the OM Global hedge fund in compliance with regulations required by the United States Securities and Exchange Commission (the “SEC”).
Plaintiff alleged that: (1) at all material times, Mr. Movalia told Plaintiff that OM Investment Management and OM Global were registered with the SEC, and in compliance with its regulations and guidelines; (2) in June of 2010, and based on the above representations, Defendants convinced Plaintiff to make an investment of $100,000 in OM Global; (3) Plaintiff recently learned that OM Global was not registered with the SEC during all material times of his investment; (4) however, OM Global has recently registered with the SEC; (5) Defendants were unaware of how to properly operate the OM Global hedge fund in accordance with SEC regulations; (6) therefore, Defendants failed to file, and/or were untimely filing, the necessary records registering OM Global with the SEC; and (7) as a result, OM Global shut down.
As a result of the above allegations, and with the agreement of Mr. Movalia, on May 29, 2013, James D. Sallah was appointed by the Court to serve as Corporate Monitor for OM Global.
The Corporate Monitor is working to discover, marshal, and preserve funds and assets derived from investors. The Corporate Monitor is also working on developing a Court-approved claims procedure to repay investors, which will take several months, at a minimum, to accomplish. The Corporate Monitor appreciates investors’ patience during this process. This new website was created to provide information to investors regarding the efforts of the Corporate Monitor to discover, marshal, and preserve for the benefit of all investors the funds and assets of OM Global. As this website will be updated frequently with Court filings, investor letters and other materials, we encourage all investors to visit frequently. In the event any investor concern is unclear or not addressed in this website, please contact the Corporate Monitor’s counsel using the contact information provided herein.