In mid-March, OffshoreAlert, a US-based company which specializes in uncovering fraud, claimed that Belvedere Management Limited (“Belvedere”) has been operating a massive $16 billion Ponzi scheme. Based in Mauritius, Belvedere is controlled by Cape Town based Cobus Kellermann, Irish businessman David Cosgrove, and Mauritian accountant Kenneth Maillard and operates mainly in Mauritius, South Africa, Cayman and Guernsey.
OffshoreAlert describes Belvedere as a “massive criminal enterprise” which operates approximately 125 hedge funds and allegedly defrauded its investors by providing false net valuations, managing funds that disappeared, making false statements in financial documents, and misappropriating millions. David Marchant, the founder of OffshoreAlert, stated that he believes that money was getting kicked up to Kellermann by way of administration or investment management fees.
Other fraudulent operations are allegedly linked to Belvedere, including a $130 million Ponzi scheme in the Cayman Islands currently under investigation by the British Police. Additionally, the Mauritian Financial Services Commission (FSC) took action against two companies under Belvedere’s administration in October 2014, The FSC prohibited these two funds – Lancelot Global PCC and The Four Elements PCC – from accepting new business. After the OffshoreAlert report broke, the FSC issued a public warning to remind stakeholders of its investigation into Belvedere and to notify them that “[i]n accordance with its functions to protect consumers of financial services, an inspection was conducted in 2015 and the FSC Mauritius shall issue a Notice in due course to keep members of the public/investors informed.”
The allegations are still just that – allegations. However, according to OffshoreAlert’s report, there have been numerous signs that Belvedere is unable to pay back investor claims. Further, many suspect that US money was invested in the hedge funds managed by Belvedere, but it has yet to be located. More facts regarding this potentially massive Ponzi scheme continue to be uncovered daily so stay tuned for further updates.
If you invested with in Belvedere Management or another investment that caused you to lose a significant portion of your savings, call us at Chapman LLC. Since 1998, the experienced attorneys at Chapman LLC have been fighting for victims of investment fraud and broker misconduct. Victims of investment fraud or broker misconduct should call Chapman LLC at 1-877-410-8172 for a free initial consultation. Callers will speak directly to an attorney who will fight for them.