The Illinois Securities Department Investigation into Robert Walberg, Chartwell Advisory Group LLC, and Chartwell Strategies LP

If you invested money with Robert Walberg, Stoltmann Law Offices may be able to help you recover your money. On January 24, 2019, the Illinois Securities Department issued a Temporary Order of Prohibition against Robert C. Walberg, Chartwell Strategies LP, and Chartwell Advisory Group LLC. Chartwell Strategies LP is a hedge fund created and sold by Robert C. Walberg and his company, Chartwell Advisory Group LLC. According to the Illinois Securities Department, Mr. Walberg solicited an Illinois resident at the end of 2017 and early 2018 to invest in Chartwell Strategies LP. Mr. Walberg allegedly commingled his client’s funds with his personal assets. Mr. Walberg also solicited investors outside of Illinois, including Pennsylvania, and relied on other financial professionals, like accountants, to refer investors to him and Chartwell. Over $2 million has been invested in Chartwell Strategies. In the Order, the Illinois Securities Department found that Mr. Walberg violated Section 12.F and 12.I of the Illinois Securities Law, which prohibit the fraudulent sale of securities to Illinois residents. Walberg and Chartwell are still under investigation and the Illinois Securities Department has reached out to investors to notify them of these scheme.

Mr. Walberg was a registered FINRA broker on and off from 1984 through 2013, but he has not been registered with the SEC or FINRA since November 2013. Some of the firms with who was registered include T3 Trading Group LLC, Waddell & Reed, Inc., Capstone Investments, E.F. Hutton & Co., and Francis Manzo & Co., Inc.

Chartwell Strategies was registered with the Securities and Exchange Commission as a Regulation D offering on August 10, 2015. According to Form D, Mr. Walberg and Chartwell operate out of Rolling Meadows, Illinois and Mr. Walberg is the Executive Officer and Promoter of Chartwell Strategies L.P. The minimum investment is $25,000 and Mr. Walberg receives a 1% annual management fee of the total assets under management. A Regulation D private placement allows a company to raise capital without registering with the SEC, other than filing a Form D. However, given that Mr. Walberg has not been registered to sell securities since 2013, he was not allowed to sell the Chartwell hedge fund to anyone, and violated the Illinois Securities Law by doing so.

Since learning of the Illinois Securities Department’s investigation, investors have tried to liquidate their investments in Chartwell Strategies and Mr. Walberg has given them the run around, stating that he will return their money then failing to do so months later.  While Mr. Walberg is nonresponsive, Stoltmann Law Offices is here to help you take legal action against him and his companies to recover your investment losses.

Regulation D investments are typically complex, high-risk investments, and are generally unsuitable for most investors. Given the allegations by the Illinois Securities Department of commingling, it is likely that Chartwell Strategies was an illegitimate investment offering that Walberg used to abscond client assets. Unfortunately, it is common for these types of investments to be sold by unregistered companies and individuals, which is why it is important to always contact your state’s securities department before investing. If you made any investments with Robert Walberg and Chartwell, it is imperative that you call Stoltmann Law Offices as soon as possible for a free evaluation to determine any recourse. Our firm has helped victims recover money from fraudulent Regulation D investments for decades. We work on a contingency fee basis, so we do not get paid until you do!