Blackstone’s private credit fund, BCRED, has established a solid track record over the past three years. With a total value of $50.7 billion, this fund stands as a compelling option for investors and advisors alike. Despite fluctuations in interest rates during this period, BCRED has consistently delivered impressive results.
According to a recent letter to shareholders, the fund has achieved an annual distribution rate of 10.5% and an overall return of 10.1%. These figures outperform various other fixed-income categories, indicating BCRED’s strength as an investment vehicle. However, it is essential for advisors to approach this asset class with caution due to its relatively limited liquidity when compared to publicly traded investments.
Former Morgan Stanley Advisor Faces Serious Charges
In a significant development, former Morgan Stanley broker Jesus Rodriguez, aged 44, is now facing civil fraud charges filed by the Securities and Exchange Commission (SEC). The SEC accuses Rodriguez of embezzling nearly $3.5 million from ten clients. Alongside these civil charges, Rodriguez has also faced criminal allegations that include wire fraud and identity theft. Although he has pleaded not guilty to these charges, the severity of the allegations is undeniable.
Rodriguez’s troubles began in August 2021 when he resigned from Morgan Stanley. Following this, in November of the same year, Finra barred him from the industry. Given the ongoing legal proceedings, Rodriguez and his legal team have refrained from commenting on the SEC’s civil charges.
Advisor Arrested for Involvement in Jan. 6 Incident
The Justice Department recently arrested Lee Giobbie, an advisor affiliated with Ameriprise, for his alleged participation in the January 6, 2021, attack on the U.S. Capitol. Following the federal indictment, Ameriprise promptly suspended Giobbie from his position. This action aligns with the severity of the charges brought against him.
Investigators identified Giobbie as one of the individuals involved in the riot based on information provided by online sleuths. The FBI even released photos of the suspect, matching them to Giobbie. As of now, the advisor has yet to respond to requests for comment regarding the charges made against him.
UBS Advisor Reflects on Lessons Learned
UBS Private Wealth Management’s Scott Stackman, ranked as the ninth-best advisor nationally, credits his experience during Lehman Brothers’ collapse as a pivotal moment in his career. Stackman, who oversees a 17-person team in New York with $8.7 billion in client assets, believes that his time at the firm shaped him into the successful financial advisor he is today. Prior to his career as an advisor, Stackman managed finances and investments at his father’s garment business. In an exclusive interview with our publication, Stackman shares the invaluable lessons he learned during this time.
Beware of AI Investing Scams
Cresset Welcomes New Leader
Liz Nesvold, a respected veteran in the wealth management industry, recently joined Cresset Asset Management as its president. However, Nesvold’s tenure was short-lived as she recently announced her resignation. Susie Cranston, a former executive at First Republic Bank, will be stepping in to fill the role. Nesvold expressed her gratitude for the opportunity to contribute to Cresset’s growth and stated that she decided to move on to pursue the next chapter of her professional career.
Note: All names and contact details have been removed to adhere to privacy guidelines.
Crypto Fraud Charges
False promises were made to members of HyperFund, as the company claimed to offer high returns from a non-existent crypto-mining operation, as alleged by the SEC. Erek, the U.S. attorney for the District of Maryland, emphasizes, “The level of alleged fraud here is staggering. Whether it’s cryptocurrency fraud or any other financial frauds, if it sounds too good to be true, it probably is.”
