SMK capital management
Member since 2024 · 4 posts · 3 votes
SMK capital management
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Adam JernowPro Member
Investor · New York City, NY · Member since 2015 · 50 posts · 15 votesQuote from @Erica Leigh:
Yes, I invested with them. The ATM fund was a Ponzi scheme perpetuated by Daryl Heller of Pennsylvania, who is under investigation by the FBI and SEC and has been charged by the SEC for running a 770 million dollar Ponzi scheme. That will be a significant capital loss for me, only mitigated slightly by the fact that I was a year in when the fraud was discovered. Anyone who had just invested would have lost everything. I don’t blame SMK for that loss, as the fraudulent scheme was apparently highly sophisticated. Due diligence cannot necessarily protect against that kind of fraud.
However, I have multi family investments with them as well. One has zero cash flow and I expect it to be an eventual (large) capital loss due, in my opinion, to mismanagement and poor due diligence. The other property cash flows at 2% annually which is very low compared to projections. I don’t hold much hope for that property either. Of note, through a different sponsor, I have a multi family investment located in the same city as the failed property and it is doing fairly well. The contrast between SMK and the other sponsor in deal making, due diligence, and property management (which SMK delegates to operating “partners,”) is striking.
I won’t invest further with them and will be surprised if I ultimately retain more than half of my invested capital. These are my thoughts based on the specifics of my situation with SMK.
They're syndicators. Good marketing. My best deals have been with lousy marketers/great operators.
5 Replies
- Specialist · San Diego · Member since 2023 · 98 posts · 20 votes2y
Hmmm. Funds usually don't advertise
- 2yAdam JernowPro MemberInvestor · New York City, NY · Member since 2015 · 50 posts · 15 votes
Quote from @Jayson Tripp:
Anybody invest with these guys. They had an ATM fund that looked interesting, but I couldn't find anyone talking about them online.
yeah. you can reach out if you're serious and before you do...
- Member since 2026 · 1 post · 1 vote9mo
Yes, I invested with them. The ATM fund was a Ponzi scheme perpetuated by Daryl Heller of Pennsylvania, who is under investigation by the FBI and SEC and has been charged by the SEC for running a 770 million dollar Ponzi scheme. That will be a significant capital loss for me, only mitigated slightly by the fact that I was a year in when the fraud was discovered. Anyone who had just invested would have lost everything. I don’t blame SMK for that loss, as the fraudulent scheme was apparently highly sophisticated. Due diligence cannot necessarily protect against that kind of fraud.
However, I have multi family investments with them as well. One has zero cash flow and I expect it to be an eventual (large) capital loss due, in my opinion, to mismanagement and poor due diligence. The other property cash flows at 2% annually which is very low compared to projections. I don’t hold much hope for that property either. Of note, through a different sponsor, I have a multi family investment located in the same city as the failed property and it is doing fairly well. The contrast between SMK and the other sponsor in deal making, due diligence, and property management (which SMK delegates to operating “partners,”) is striking.I won’t invest further with them and will be surprised if I ultimately retain more than half of my invested capital. These are my thoughts based on the specifics of my situation with SMK.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes9moSo were they a fund of funds or did they actually manage any of their assets / funds? Curious if you were aware of this upfront as well.
Quote from @Erica Leigh:
Yes, I invested with them. The ATM fund was a Ponzi scheme perpetuated by Daryl Heller of Pennsylvania, who is under investigation by the FBI and SEC and has been charged by the SEC for running a 770 million dollar Ponzi scheme. That will be a significant capital loss for me, only mitigated slightly by the fact that I was a year in when the fraud was discovered. Anyone who had just invested would have lost everything. I don’t blame SMK for that loss, as the fraudulent scheme was apparently highly sophisticated. Due diligence cannot necessarily protect against that kind of fraud.
However, I have multi family investments with them as well. One has zero cash flow and I expect it to be an eventual (large) capital loss due, in my opinion, to mismanagement and poor due diligence. The other property cash flows at 2% annually which is very low compared to projections. I don’t hold much hope for that property either. Of note, through a different sponsor, I have a multi family investment located in the same city as the failed property and it is doing fairly well. The contrast between SMK and the other sponsor in deal making, due diligence, and property management (which SMK delegates to operating “partners,”) is striking.I won’t invest further with them and will be surprised if I ultimately retain more than half of my invested capital. These are my thoughts based on the specifics of my situation with SMK.
7e investments53 Reviews - 9moAdam JernowPro MemberInvestor · New York City, NY · Member since 2015 · 50 posts · 15 votes
Quote from @Erica Leigh:
Yes, I invested with them. The ATM fund was a Ponzi scheme perpetuated by Daryl Heller of Pennsylvania, who is under investigation by the FBI and SEC and has been charged by the SEC for running a 770 million dollar Ponzi scheme. That will be a significant capital loss for me, only mitigated slightly by the fact that I was a year in when the fraud was discovered. Anyone who had just invested would have lost everything. I don’t blame SMK for that loss, as the fraudulent scheme was apparently highly sophisticated. Due diligence cannot necessarily protect against that kind of fraud.
However, I have multi family investments with them as well. One has zero cash flow and I expect it to be an eventual (large) capital loss due, in my opinion, to mismanagement and poor due diligence. The other property cash flows at 2% annually which is very low compared to projections. I don’t hold much hope for that property either. Of note, through a different sponsor, I have a multi family investment located in the same city as the failed property and it is doing fairly well. The contrast between SMK and the other sponsor in deal making, due diligence, and property management (which SMK delegates to operating “partners,”) is striking.I won’t invest further with them and will be surprised if I ultimately retain more than half of my invested capital. These are my thoughts based on the specifics of my situation with SMK.
They're syndicators. Good marketing. My best deals have been with lousy marketers/great operators.
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