There are options for clients of Tembion Capital Management, LLC broker Mark Jensen (CRD# 2748816) who suffered investment losses in LJM Capital Preservation and Growth Fund. Jensen has been registered with Tembion Capital Management, LLC in Sante Fe, New Mexico since 2012.
LJM Partners is an investment management firm that operates the mutual fund LJM Capital Preservation and Growth Fund (NASDAQ: LJMIX). The investment, “seeks capital appreciation and capital preservation with low correlation to the broader U.S. equity market. Under normal circumstances, the fund invests primarily in purchased (aka ‘long’) and sold (aka ‘short’) call and put options on Standard & Poor’s 500 Futures Index (‘S&P’). The fund seeks to achieve its investment objectives by capturing gains on options sold on S&P futures contracts that can be purchased (‘closed’) at a later date for a lower price than the price realized when originally sold,” according to U.S. News & World Report. It is alleged that LJM Capital Preservation and Growth Fund was not focused on capital preservation and instead exposed investors to unacceptably high risk of catastrophic loss by not taking appropriate steps to preserve capital in down markets. Investing in volatility-linked products is extremely complex and risky and likely not a suitable and recommended strategy for the average investor.
Jensen has been the subject of eight customer complaints between 2018 and 2020, one of which was denied, according to his CRD report:
- April 2020. “Allegations of breach of fiduciary duty, professional negligence, negligent misrepresentation, violation of NM Uniform Securities Act, and violations of NM Unfair Practices Act in connection with client’s investments in LJM Partners products which collapsed on February 5-6, 2018.” The customer is seeking $361,262.02 in damages and the case is currently pending.
- January 2020. “Complainants are bringing a claim as the beneficiaries of their parents’ accounts. Allegations of breach of fiduciary duty, wrongful conduct, breach of written and oral contract, constructive fraud, fraud by misrepresentation and omission, failure to supervise, and violation of State and Federal securities laws Act in connection with parent’s investments in LJM Partners products which collapsed on February 5-6, 2018.” The customer is seeking $200,000 in damages and the case is currently pending.
- May 2018. “Allegation of breach of fiduciary duty in connection with clients’ investment in LJM Preservation and Growth which collapsed on February 5-6, 2018.” The customer is seeking $160,000 in damages and the case is currently pending.
- May 2018. “Allegations of negligence, breach of contract, and breach of fiduciary duty in connection with clients’ investment in LJM Preservation and Growth which collapsed on February 5-6, 2018.” The customer sought $200,000 in damages and the case was settled for $272,029.53.
- March 2018. “Allegations of breach of fiduciary duty, negligent misrepresentation, violation of NM Unfair Practices Act, professional negligence, violation of NM Uniform Securities Act in connection with clients’ investments in LJM Partners products which collapsed on February 5-6, 2018.” The customer sought $6,158,176.48 in damages and the case was settled for $427,329.
- March 2018. “Allegations of negligence and breach of fiduciary duty in connection with clients’ investment in LJM Preservation and Growth which collapsed on February 5-6, 2018.” The customer sought $1,360,000 in damages and the case was settled for $400,000.
- February 2018. “Allegations of breach of fiduciary duty, unfair trade practices, negligent misrepresentation, breach of contract and implied covenant of good faith and fair dealing, negligent supervision, control person liability, and respondeat superior in connection with clients’ investment in LJM Preservation and Growth which collapsed on February 5-6, 2018.” The customer sought $726,980.32 in damages and the case was settled for $225,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Tembion Capital Management, LLC may be liable for investment or other losses suffered by Jensen’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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