NIR Group Accused of Fabricating Returns

July 24th, 2009
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Corey Ribotsky’s Long Island-based NIR Group is being sued by investor Steven Mizel, who maintains that the firm has provided “wholly fanciful” valuations. NIR Group’s strategy has been to make private investments in public companies, a practice which tends to post good returns for NIR Group even when the public company’s stock price drops. Recently, Mr. Ribotsky explained to investors that he was halting redemptions as a result of restructuring, a practice that Mr. Mizel views with suspicion. He accuses the firm of freezing redemptions to avoid investors getting wind of the supposed bogus valuations. However, NIR Group’s funds are valued by the independent firm WTAS. This is the second time NIR Group has been sued for bogus valuations; the first case was settled out of court.
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