SEC Charges Tweed Investment Services and Owner Robert Tweed with Fraud in Athenian Fund Scheme

Attorney Advising Disclaimer

An SEC complaint filed in the Central District of California alleges that Tweed Financial Services, Inc. and its owner, Robert Russel "Rusty" Tweed, committed fraud through a series of materially untrue statements and omissions, and by investing 24 customers' money in two undisclosed and unapproved investments that ultimately lost $800,000.

Tweed also stands accused of attempting to cover up the misconduct and losses by sending fabricated or falsified account statements claiming flat or positive income and returns on underperforming investments associated with troubled entities.

The Law Offices of Jonathan W. Evans & Associates is investigating claims against Robert Russel "Rusty" Tweed, Athenian Fund, and Tweed Financial Services, including allegations that Tweed sold unsuitable oil or unprofitable oil and gas private placements and real estate investment trusts (REITs), some of which have gone bust, to elderly and retired clients.

SEC Complaint #2:17-cv-7251

In July, FINRA named Robert Russel Tweed of Glendale, California in a complaint alleging that Tweed raised $1.6 million from investors through false and misleading statements, including a false and misleading private placement memorandum used to sell interests in the Athenian Fund LP, a pooled fund that Tweet created and controlled.

Tweed purportedly later moved investors' money out of Athenian Fund into the Quantitative Analytics Master Fund (QAMF) of Utah, which was controlled by Tweed's business acquaintance and former Cedar Hills, Utah mayor Eric Richardson.

According to the paperwork, QAMF used about 40% of Athenian Fund's investment for a "loan" to a third party, which tied up the funds as Tweed attempted to retrieve them. Tweed then purportedly used a portion of the remaining 60% to invest in a software business operated by a friend of his known as Teamwork Retail, LLC, and based in Clearwater, Florida.

Tweed subsequently received more than $100,000 for "consulting services" from Teamwork Retail.

The findings state that QAMF's third-party "loan" turned out to be an investment in a gold mining venture in Ghana, and the approximately $650,000 that had been transferred out for the Ghana gold dust venture was never repaid nor recovered by the Fund's investors. In 2012, Tweed learned that the QAMF manager, Richardson, had been indicted for felony bank fraud, and had entered a guilty plea, but failed to inform his clients.

Meanwhile, the software business similarly failed to turn a profit and actually filed for bankruptcy, taking Tweed's $200,000 investment with it.

However, instead of writing off the investments or informing customers of the QAMF manager's fraud charges and software company's bankruptcy, Tweed purportedly continued sending quarterly account statements to Athenian Fund investors falsely claiming neutral or positive returns, furthermore concealing the fact that the funds were held in illiquid and unprofitable investments.

Tweed, who faces 14 disclosures and a handful of recent customer complaints in his BrokerCheck file, is presently associated with Cabot Lodge Securities LLC of San Marino, California. He formerly served as a registered representative with CapWest Securities, Inc. (since expelled by FINRA), MAM Securities of Sherman Oaks, United Securities Alliance of San Marino, and National Planning Corporation of El Segundo.

If you have invested with Robert Russel "Rusty" Tweed, his firm Tweed Financial Services, the Athenian Fund LP, Quantitative Analytics Master Fund, or with any broker or financial adviser whose undisclosed and unauthorized investment of your funds in poorly-performing businesses—including those shrouded by undisclosed bankruptcies of fraud indictments—and these unsuitable fraudulent investments have proven harmful to your financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Related Posts
  • Stephen Takeda Barred During Customer Loans Investigation Read More
  • Credit Suisse Ends 9 ETNs, Including Delisted VelocityShares Products That Lost 90% of Value Read More
  • Daniel King Cited for Unsuitable Recommendations on Margin Resulting in Damages Read More