An uncorrelated return stream, sourced from federal fraud recovery law instead of the market.
Hedge Fund Hunters underwrites and finances whistleblower claims filed under the SEC, CFTC, and DOJ award programs. Returns are driven by the outcome of individual enforcement actions, not equity, rate, or credit cycles.
Fraud keeps growing. Enforcement hasn't kept up.
The gap between money stolen and money recovered is the entire addressable opportunity. It's large, it's federally documented, and it's getting bigger every year.
"Consumers reported losing more money to investment scams, $5.7 billion, than any other fraud category in 2024."Federal Trade Commission, March 2025
This is the addressable universe Hedge Fund Hunters underwrites against: capital already stolen, fraud already committed, and a federal bounty system designed to recover it.
Four federal programs, one job: pay for proof of fraud.
Congress built four separate channels that pay whistleblowers for information leading to enforcement action. Hedge Fund Hunters finances the case-building work that gets a claim in front of regulators.
SEC Whistleblower Program
Congress authorizes awards of 10 to 30% of amounts recovered to individuals whose information leads to enforcement action.
CFTC Whistleblower Program
Pays monetary awards to eligible whistleblowers who voluntarily provide original information resulting in sanctions exceeding $1,000,000.
DOJ Whistleblower Program
A newly launched pilot program rewards individuals who voluntarily provide truthful, original information with a share of resulting forfeitures.
FIRREA
Permits the DOJ to sue financial institutions for wrongful acts, including wire fraud, mail fraud, and false loan statements, on behalf of the government.
A federal pipeline far larger than any one fund can underwrite today.
The SEC alone received 27,000 whistleblower tips in fiscal year 2025. Since the program's inception through FY2024, it has paid out $2.2 billion across 444 whistleblowers, an average of roughly $5 million per award.
Hedge Fund Hunters currently holds 17 active cases, with 22 filed and 25 more in active pipeline. That is a small fraction of the tips regulators receive every year, which is the point: case selection, not deal flow, is the constraint on how much capital this strategy can deploy well.
Every case in the portfolio is prioritized against public and private investment firms with over $100 million in assets, where recoverable assets and related entities are identifiable and a claim can be filed with strong underlying documentation.
$2.2 billion paid out. The program works.
These are program-level, federally reported figures, not fund projections. They establish that the underlying recovery mechanism has a real, audited history of paying out.
FY2025 awards totaled $60 million to 48 whistleblowers, down from $255 million in FY2024, a reminder that award timing and size vary year to year.
Case-level detail, audited fund financials, and subscription documents are available in the data room once accreditation is verified.
How the fund makes money.
Underwriting discipline, not deal volume, is what turns a large federal pipeline into a fund-level return.
Underwrite the case
Legal cost per case is capped at 10% of the anticipated weighted recovery amount. Example: a $3M expected recovery caps investment at $300,000.
Finance the filing
Whistleblower lawyers work on contingency. Counsel alerts SEC attorneys directly to help expedite regulator review once a case is filed.
Collect the award
Federal programs pay 10 to 30% of amounts recovered. At a 50% success rate on a $3M expected recovery, expected return is a 5x multiple on capital deployed.
Select investments are financed with non-recourse capital from independent third-party litigation funders, who hold priority claims on recovery proceeds of the specific cases they finance. Cases typically take 5 to 7 years to resolve. That makes this an illiquid, long-duration asset class by design, not a shortcoming.
Three confirmed enforcement actions behind the category thesis.
These are SEC and DOJ enforcement outcomes that confirm the underlying fraud category is real and gets prosecuted. They establish that the recovery mechanism works, not that these specific claims are attributed to LOFFCO's current portfolio.
National Realty Investment Advisors
$658 million real estate Ponzi scheme, exposed
SEC filed civil fraud charges against NRIA and four executives (Oct. 2022). Ringleader Thomas Nicholas Salzano was sentenced to 12 years in federal prison (Nov. 2024) with a $507.4 million restitution order.
International Investment Group
$60 million fake-loan fraud at a registered adviser
SEC charged IIG in November 2019, revoking its registration and entering final judgment for more than $35 million in disgorgement.
Retail Ecommerce Ventures
$112 million scheme behind the RadioShack relaunch
SEC charged co-founders and REV's COO in September 2025. Charges announced, not yet adjudicated. Matter unresolved as of this writing.
Who underwrites every case.
LOFFCO Risk Management LLC is the registered investment manager and fiduciary for Hedge Fund Hunters. Every case is underwritten jointly across three functions before capital is committed.
Bryan A. Wood
Ranked Band 1 in Whistleblower Law by Chambers and Partners (2026) and a repeat Benchmark Litigation Star. Nearly 30 years representing federal whistleblowers under the SEC, DOJ, FinCEN, CFTC, IRS, and OSC programs, with more than $100 million in awards secured for clients, including cases tied to a $400M+ currency trading fraud settlement, $450M+ combined Ponzi scheme settlements, and a $4B+ cryptocurrency exchange settlement.
Investment Management
LOFFCO Risk Management: portfolio construction, case underwriting economics (10% cost-to-recovery cap), and fund-level risk and liquidity management.
Forensic Accounting & Data Analytics
Independent forensic accountants and data specialists identify hidden assets, shell structures, and fraudulent transaction patterns to support case theses.
Detailed principal biographies, track record attribution, and references are available in the data room upon accreditation verification.
Raising $10,000,000 under Rule 506(c).
General solicitation is permitted under 506(c). Every investor must be verified accredited or a qualified institutional investor before any commitment.
Verification of accredited or qualified institutional investor status is required prior to any commitment, consistent with Rule 506(c) requirements.
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