Category Archives: Grifphon Asset Management Victims

Blau & Malmfeldt provides recovery assistance to those who invested in Yusaf Jawed’s Grifphon Asset Management scheme. Find out how we can help recover your losses.

Grifphon Asset Management Head Sentenced to Prison

On September 23, 2013, Yusaf Jawed, the former head of Grifphon Asset Management, received a six and a half year prison sentence.  The U.S. District Court for the District of Oregon ordered that Jawed serve three years of supervised release after his prison sentence and pay $6.47M  to victims of his Ponzi scheme.

In April 2013, Jawed pleaded guilty to five counts of mail fraud and 12 counts of wire fraud in connection with his $34M Ponzi scheme.  As reported on this blog, Jawed used phony marketing materials, audit reports, and tax statements promising double or triple digit returns to lure investors into Grifphon hedge funds.  Soon after Jawed received investor money, he transferred the money into his personal management accounts and used the money to fund his lavish lifestyle.

Under federal minimum sentencing guidelines, the court could have sentenced Jawed to eight years in prison; however, he received a lighter sentence as a result of his cooperation with the government’s investigation into Grifphon’s affairs.

In a parallel civil proceeding, the SEC issued an order on September 11, 2011 requiring Jawed and Grifphon to pay $33.9M.  The SEC also took disciplinary actions against Jawed and associates Robert P. Curtis, Jacques Nichols, Lyman Bruhn and Ben Daniels.  Curtis, Nichols and Bruhn aided Jawed in the orchestration of a scheme whereby fraudulent records were created indicating that a series of shell companies had purchased assets in Gifphon hedge funds.

Daniels, a former Coachella Valley, CA securities broker, steered over $4M of investor money into Grifphon funds.  For his services, Daniels received $286,683 in commissions.

Investors in Grifphon are encouraged to contact Blau & Malmfeldt at 312-443-1600 to discuss recovery options.  Blau & Malmfeldt is a law firm based in Chicago that represents investors across the country in securities, commodity futures, partnership, and shareholder rights disputes.

Recovery Options for Grifphon Asset Management Victims

It may be possible for victims of Grifphon Asset Management’s multi-million dollar Ponzi scheme to reclaim investment losses by pursuing FINRA arbitration claims against securities brokerage firms and securities brokers that sold investments in Grifphon funds, including the Grifphon Alpha I Fund.

After being fired from his securities firm in 2000, Yusaf Jawed began over a decade long run of fraud under the Grifphon Asset Management name.  Jawed used phony marketing materials, audit reports, and tax statements to claim that Grifphon’s funds were making double or triple digit returns on their investments.  At one point in 2010, Jawed claimed to manage $63 million in assets for 150 investors.  In reality, Grifphon made few investments.  Most of the money went to finders fees, broker fees, transfers to Jawed’s personal accounts, and other schemes.  Jawed claimed that transfers to his personal accounts were investments in “off-shore” bonds, when in fact he was using investor money to finance his lifestyle.  In 2008 Jawed set up a shell company to further his schemes with his friend Lyman Bruhn that claimed to want to buy out Grifphon’s hedge funds.

The SEC brought fraud charges against Jawed on September 21, 2012.  Jawed pled guilty to 17 counts of mail and wire fraud in April 2013, and agreed to a $34 million settlement to resolve civil charges against him.  After Jawed completes his expected 6 ½ year prison sentence, he will likely have 10% of his income garnished by the government to pay off the $34 million civil settlement and $6.7 million in fines charged against him in the criminal case.  He is also banned for life from working in the securities industry.

There is little chance that Jawed will be able to compensate investors for his crimes.  Investors recently took action in a class action suit against Grifphon’s accountants and lawyers to recoup some of their losses.  Jawed is also cooperating with the SEC as they investigate parties associated with Grifphon.

Pursuing FINRA arbitration against their securities brokers is another option investors have to receive restitution for their losses in Grifphon funds.  Brokerage firms have an obligation to perform due diligence on the securities they sell and have a fiduciary duty to their clients.  One recent arbitration decision resulted in a $130,095 arbitration award on a $230,105 claim against Raymond James Financial Services for selling an investment in the Grifphon Alpha I Fund.

If you were a victim of the Grifphon Ponzi scheme, you may be able to recoup some of your losses in FINRA arbitration.  Blau & Malmfeldt is a law firm that represents investors across the United States in securities, commodity futures, partnership, and shareholder rights disputes.  Please call us at 312-443-1600 or email Paul Malmfeldt at pmalmfeldt@blau-malmfeldt.com to schedule a free consultation or learn more about the services we offer.