We are currently investigating the fraud of Chicago-based investment advisor, Joseph J. Hennessy and his firm, Resources Planning Group (RPG). Joseph Hennessy was recently charged by the Securities and Exchange Commission (SEC) with defrauding clients and others who were promised returns that would “beat the market” for investing in a private equity fund called the Midwest Opportunity Fund, LLC (MOF). Investors were not informed that the fund was failing and their investments were being used to repay promissory notes to earlier investors.
According to the SEC’s Complaint, the scam began in approximately 2007, when Hennessy and Resources Planning Group misappropriated funds from clients and misrepresented the viability of the Midwest Opportunity Fund in order to raise more than $1.3 million from investors. Hennessy failed to tell investors of the poor condition of the MOF, that he had personally guaranteed MOF promissory notes, or that their money was being used to repay those promissory notes. Hennessy further misrepresented that MOF could offer high returns and was a good alternative to the “market”. Hennessy used at least $641,408 of the funds to repay the earlier promissory notes, substantially reducing his personal liability on those notes.
The SEC also alleges that many of the defrauded investors are RPG clients who are older and retired. It is further alleged that Hennessy misappropriated at least $750,000 from RPG client funds and an addition $100,000 by use of forged letters of authorization for RPG clients.
The SEC’s Complaint charges Hennessy with violating sections of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. RPG is also charged with violating sections of the Investment Advisers Act.
Due to Mr. Hennessy’s failure to disclose the SEC action to the Illinois Secretary of State, the Illinois Securities Department entered an order suspending Mr. Hennessy’s registration as a seller of securities on December 14, 2012.
Our law firm is dedicated to and has been successful in recovering investment losses for hundreds of victims of investment fraud and ponzi or theft schemes. Fortunately for investors who have had funds stolen or who have been defrauded by Hennessy, some, or all of these losses might be recoverable. To learn more about how to recover losses related to the fraudulent conduct of Hennessy, Resources Planning Group and the related parties on a contingency fee basis, please contact our law firm in St. Charles, Illinois for a no obligation, consultation.
John Burke Esq
Higgins & Burke
2560 Foxfield Road, Suite 200
St. Charles, IL 60174