The Securities and Exchange Commission (“SEC”) and a private investor, Chirag Amin, have initiated lawsuits against a Tampa-based investment adviser, its principal, and an unregistered hedge fund.
In an action filed in the United States District Court for the Southern District of Florida, the SEC formerly charged OM Investment Management, LLC (“OM Management”), its principal, Gignesh Movalia, and its director of investments, Edwin Gaw, a Massachusetts resident, with making material misrepresentations and omissions to investors in connection with the hedge fund, OM Global Investment Fund, LLC (“OM Global”). In addition, an investor, Chirag Amin, filed a state court action in Miami-Dade circuit court naming Gignesh Movalia and OM Global as defendants. Gignesh Movalia is a resident of Land O’ Lakes, Florida.
The SEC’s complaint alleges that OM Management, through Movalia and Gaw, made material misrepresentations and omissions to potential investors concerning OM Global’s holdings, the identity of OM Global’s auditor, and OM Global’s registration status. The SEC also alleged that OM Management did not accurately disclose OM Global’s participation in related party transactions, misappropriated investors’ investments, falsified documents, and violated the federal securities laws governing investment advisers.