Former CIO of Infinity Q Funds Charged with Securities Fraud

On February 17, 2022, the Securities and Exchange Commission charged James Velissaris, the former CIO of Infinity Q Funds with fraud.  The commodities futures trading commission, or CFTC, also filed a complaint.  Here are the allegations from the complaints:

• From 2017 through February 2021, assets in two mutual funds, the Infinity Q Diversified Alpha mutual fund and the Infinity Q Volatility Alpha private fund, were overvalued.
• Velissaris allegedly altered the code of a third-party pricing service that was used to value the fund’s assets.
• The fund’s actual values were as low as half of what was told to investors.  In certain months the funds were overvalued by more than $1 billion.
• In February 2021, Velissaris was removed from his role.

Government: Scam Designed to Hide Losses, Generate Fees

The motivation for inflating the assets of the fund were two-fold. First, if the fund values were higher, than higher management fees could be charged. This is because management fees are charged as a percentage of funds under management. Second, the scam was used to conceal investment losses that were suffered during the COVID-19 pandemic. At its peak, the fund exaggerated its assets by more than $1 billion.

Copy of the SEC Complaint Involving Infinity Q Funds

Copy of the CFTC Complaint Involving Velissaris

Did You Lose Money Investing?

If you lost money investing in the Infinity Q Funds, you may be able to recover your investment losses.  Please contact our securities attorneys[3] at 800-767-8040 for more information.