Dividends

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Complaint to SEC about Ponzi-like qualities of Cornerstone funds.

[July 20, 2012]

"Dear Mr. Champ,Congratulations on your recent appointment as director of the Investment Management division at the SEC.

I run a small investment partnership in New York and I would like to bring some facts about the Cornerstone Funds (the Cornerstone Total Return Fund, the Cornerstone Strategic Value Fund and the Cornerstone Progressive Return Fund, trading under the ticker symbols CRF, CLM, and CFP,respectively, and managed by Ralph Bradshaw) to your attention.

I believe that the Cornerstone Funds should be examined by the SEC due to the deceptive nature of their distribution policy, the opacity and lack of communication from management and the recent capital markets transactions the Funds have engaged in. I believe that the Cornerstone Funds are perhaps exploiting less sophisticated investors through a deceitful operation that gives excessive compensation to management with negative investment results for the Funds’ investors. Though it does not appear that the Cornerstone Funds are violating securities laws, per se, they are essentially a publicly traded Ponzi scheme.

I am passing along this information so that, to the extent that you deem appropriate, you may assist in protecting the innocent investors (both current and prospective) in the Cornerstone Funds.

Thank you for your time and attention to this matter and please do not hesitate to contact me with any comments or questions.

Respectfully, Parsa Kiai"

Click for much more...including 15 pages of supporting material https://www.scribd.com/document/100643429/Cornerstone-Letter-to-SEC