Deeproot Funds, LLC & Robert J. Mueller Charged by SEC in $58 MILLION INVESTMENT FRAUD

Bingham Law is investigating investments made in the deeproot funds (deeproot 575 Fund (the “575 Fund”), and deeproot Growth Runs Deep Fund (“the dGRD Fund”)) for suitability.  Investments in the deeproot funds may have been unsuitable for many investors.

Robert J. Mueller, of San Antonio, Texas, was the founder and investment adviser to the deeproot funds.  Recently, the Securities and Exchange Commission (“SEC”) filed a civil complaint in the District Court for the Western District of Texas against Robert J. Mueller, deeproot Funds, LLC, and Policy Services, Inc.

The SEC complaint alleges that Mueller and deeproot used new investor money to make Ponzi-like payments to earlier investors in the 575 Fund and the dGRD Fund.  Investors were told their money would be invested in life insurance policies and deeproot-related businesses to provide safe returns.  The complaint claims the defendants did not purchase any new insurance policies after September 2017, even though the 575 Fund and the dGRD Fund subsequently raised approximately $43 million.  Mr. Mueller, according to the SEC complaint, used money raised for the deeproot funds to pay for his child’s private school tuition, federal income tax payments, vacation cruises, art, jewelry for his second and third wives and $75,000 from a deeproot bank account to pay for season tickets at a professional sports arena.

An individual who sells you an investment has an obligation to know important information about the investment and to ensure the investment is appropriate for you given your circumstances.  This is particularly true if the person selling you the investment is what is called an investment adviser which is different from a stockbroker/financial advisor.

If you invested in any of the deeproot funds, call Bingham Law at (480) 832-1922 to review your situation.  You may have legal claims against the salesperson who sold you the investment and against the firm the salesperson works for.