Legal Question in Investment Law in New York

I have begun to raise capital through contacts in India and China for the purposes of putting together a fund that invests in real estate the US. The majority of the capital will be pooled an invested into Hedge Funds that require minimums such as $25MM.

Question: How much do I need to research the funds coming in so as not to be an inadvertent money launderer or worse? Is the onus on me to ensure the funds coming are legal monies and can I as a private company pool these funds for investment with my financial company at this level as a "feeder fund."

Asked on 6/09/11, 5:14 am

2 Answers from Attorneys


The laws on this matter are extremely complex and intricate, not to mention your extremely structured financial fiduciary obligations to the investors. You are dealing with vast sums of money, comparatively speaking. You should also take in to account the laws of the country where the money emanates for investment, especially considering currency restrictions and flight of capital regulations.

You need to consult an international firm with specialization in securities laws and currency regulations. This forum is certainly not one to address your concerns.

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Answered on 6/09/11, 8:18 am
Roman Fichman Esq. Law Practice of Roman Fichman Esq.

My colleague is correct. In addition, since you are the one who is making the choice which hedge fund to invest in, you may in fact be responsible if it turns out the hedge fund is fraudulent.

You need to retain counsel every step of the way to make sure the due diligence is performed properly and that the investors in the fund are advised accordingly.

Feel free to contact my office at your earliest convenience to discuss this matter.

Roman R. Fichman, Esq. │ @TheLegalist

email: Info (at) TheLegalist (dot) com

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

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Answered on 6/09/11, 9:46 am

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