Old City Securities Broker Gregory Hersch is Named in $1.4M FF Fund I Investor Fraud Claim
Ex-Florence Capital Advisors Principal is Accused of Breach of Fiduciary Duty
Old City Securities registered representative Gregory Alain Hersch is accused of negligence, breach of fiduciary, misrepresentations, and other claims. In one investor fraud case, the customer is seeking up to $1.4M in damages. Hersch, who is based out of New York, is also the owner of Florence Capital Advisors.
The investor claims they suffered losses from investing in FF Fund I, LP, which is a private equity fund, and they are pursuing their claim against Florence Capital Advisors and Hersch. Shepherd Smith Edwards and Kantas (SSEK Law Firm) are investigating customer losses involving Old City Securities Broker Gregory Hersch.
If in New York, call (716) 261-3529. Throughout the rest of the US, call our lawyers at (800) 259-9010 today.
Dozens of FF Fund I Investors Allegedly Defrauded of $38M
FF Fund I, LP is owned by Andrew T. Franzone, who is accused of defrauding investors of millions of dollars. In April 2021, the Securities and Exchange Commission (SEC) filed fraud charges against Andrew T. Franzone and investment adviser, FF Fund Management, LLC.
The regulator accused them of fraudulently raising tens of millions of dollars by selling partnership interests in FF Fund I, LP, and misappropriating the money.
The fund was supposed to stay highly liquid while focused mainly on preferred stocks and options. Franzone allegedly made misrepresentations about the investments and strategies involving the private fund, had conflicts of interest that he did not disclose, and falsely claimed that annual audits would occur.
Instead, contends the SEC, he diverted a significant chunk of the fund’s assets to another entity under his ownership while investing the rest of the money from FF Fund I in real estate ventures and private companies that were very illiquid. The fund has since filed for Chapter 11 bankruptcy protection.
About 90 FF Fund I, LP investors were defrauded of $38M. Prosecutors have filed a parallel civil action against Franzone.
Suitability, Fiduciary Duty, and Proper Supervision
Brokers and investment advisors have a duty to not only make sure that any recommendation they make is suitable for each customer and in their best interests but also, financial advisors are required to conduct proper due diligence to ensure that an investment is legitimate and safe and not part of any fraudulent scam. Failure to do this is known as a breach of fiduciary duty.
Financial firms have a duty to properly supervise their registered representatives’ activities in the accounts of customers and identify any red flags or other issues that could be problematic for their clients.
Gregory Hersch has worked for 19 years in the industry. Other broker-dealers where he used to be registered include Fusion Analytics Securities, Innovation Partners, UBS Financial Services (UBS), Citigroup Global Markets (C), and Bear Stearns and Co.
Skilled Broker Fraud Attorneys
If you suffered a loss while working with Old City Securities broker Gregory Hersch or any other financial advisor that sold you investments in FF Fund I, SSEK Law Firm would like to offer you a free, no-obligation consultation to determine whether you have grounds for an investor fraud claim to recover damages. Contact us today.