Quantek Asset Management LLC

Key Points

• SEC Settlement (2012): Quantek Asset Management LLC settled with the SEC for $3.1 million over allegations of misleading investors about management’s personal investments, investment processes, and related-party transactions from 2006 to 2010.

• Misrepresentations: The firm falsely claimed executives had “skin in the game” and misrepresented loan terms and investment processes, including backdating documents.

• Leadership Penalties: Javier Guerra, the lead principal, was barred from the securities industry for five years, and Ralph Patino, operations director, for one year.

• Fund Liquidation: Quantek’s Opportunity Fund, once managing $1 billion in assets, was liquidated during the financial crisis.

• Lack of Current Operations: There is no evidence of active operations post-2012, and the firm’s website requires JavaScript, suggesting minimal digital presence.

Overview

Quantek Asset Management LLC was a Miami-based hedge fund manager specializing in asset-backed lending in Latin America. At its peak, it managed approximately $1 billion in assets, primarily through its Quantek Opportunity Fund, which focused on alternative investments in Latin American markets. The firm marketed itself as having extensive business and portfolio management expertise, targeting institutional investors such as pension funds. Quantek was a registered investment adviser and operated under the parent company Bulltick Capital Markets Holdings, LP. The firm is now in liquidation, with no clear evidence of ongoing operations as of 2025.

Allegations and Concerns

• SEC Charges (2012): The SEC alleged that from 2006 to 2010, Quantek misled investors about:

  • “Skin in the Game” Misrepresentation: Executives, including Javier Guerra and Ralph Patino, falsely claimed personal investments in the Quantek Opportunity Fund to attract institutional investors. No such investments were made.

  • Related-Party Transactions: Quantek made undocumented and unsecured loans to entities affiliated with Guerra, misstating loan terms and backdating documents to conceal these issues.

  • Investment Process Misrepresentation: The firm provided misleading information about its investment processes, including backdating investment approval memoranda signed by Guerra.

• Due Diligence Misstatements: Quantek misrepresented key terms in responses to due diligence questionnaires, impacting investor trust and decisions.

• Investor Impact: Two institutional investors committed $100 million based on false claims about executive investments, with agreements to be notified of any principal withdrawals that never occurred.

Customer Feedback

There is limited publicly available customer feedback due to Quantek’s institutional focus and liquidation. However:

• Positive Feedback (Pre-2012): Quantek’s LinkedIn page highlights its expertise in Latin American markets and claims extensive portfolio management experience, suggesting some investor confidence before the SEC issues surfaced.

• Negative Feedback: No direct consumer reviews are available, but the SEC action implies significant investor dissatisfaction. Jason Papastavrou, who ran a fund of hedge funds invested in Quantek, sued Guerra in 2009, alleging self-dealing and fraud, indicating serious client concerns.

• Example Quote: Bruce Karpati, SEC Enforcement Division’s Asset Management unit co-chief, stated, “Quantek’s investors deserved better than the misleading information they received in marketing materials, side letters and other fund documents.”

Risk Considerations

• Financial Risk: The firm’s liquidation and $3.1 million SEC settlement indicate significant financial instability. Investors lost access to funds during the financial crisis, and there is no evidence of current financial viability.

• Reputational Risk: The SEC charges and public allegations of fraud have severely damaged Quantek’s reputation, making it unlikely to attract new investors or partners.

• Legal Risk: The firm and its principals faced administrative and cease-and-desist proceedings, with Guerra and Patino barred from the securities industry. Future legal liabilities may arise if additional investors pursue claims.

• Operational Risk: With no active operations or accessible website, Quantek appears defunct, posing risks to any remaining stakeholders expecting continuity.

Business Relations and Associations

• Key Individuals:

  • Javier Guerra: Lead principal until his resignation in October 2011. Barred from the securities industry for five years and paid $150,000 in penalties. Now a private investor.

  • Ralph Patino: Former operations director, barred for one year, paid $50,000 in penalties. His lawyer stated, “We’re pleased to put the matter behind us.”

• Parent Company: Bulltick Capital Markets Holdings, LP, Quantek’s former parent, was also named in the SEC settlement and paid $300,000.

• Investors: Institutional investors, including a fund of hedge funds managed by Jason Papastavrou (Aris Capital Management), were key clients. Papastavrou’s 2009 lawsuit against Guerra suggests strained relations.

• No Current Partnerships: There is no evidence of active business relationships post-liquidation.

Legal and Financial Concerns

• SEC Settlement (2012): Quantek, Guerra, Patino, and Bulltick settled for $3.1 million, including:

  • $2.2 million in disgorgement and prejudgment interest (jointly by Quantek and Guerra).

  • $375,000 penalty by Quantek.

  • $150,000 penalty by Guerra.

  • $50,000 penalty by Patino.

  • $300,000 payment by Bulltick.

• Industry Bans: Guerra was barred for five years, Patino for one year, limiting their ability to operate in the securities industry.

• Lawsuit (2009): Jason Papastavrou’s lawsuit against Guerra alleged self-dealing and fraud, predating the SEC action.

• Liquidation: The Quantek Opportunity Fund was liquidated during the financial crisis, returning $260 million to investors, though losses were likely significant.

• No Bankruptcy Records: No public records indicate formal bankruptcy, but liquidation suggests severe financial distress.

Risk Assessment Table

Expert Opinion

Quantek Asset Management LLC’s history is a cautionary tale of mismanagement and deceptive practices in the hedge fund industry. The firm’s expertise in Latin American markets and its $1 billion asset peak were overshadowed by serious ethical and legal breaches. The SEC’s 2012 findings of fraud, including misrepresentations about “skin in the game” and related-party transactions, highlight a lack of transparency and integrity. The liquidation of its Opportunity Fund during the financial crisis and the absence of current operations suggest Quantek is no longer a viable entity.

Pros:

• Historical expertise in Latin American alternative investments.

• Returned $260 million to investors during liquidation, showing some responsibility.

Cons:

• Severe reputational damage from SEC charges and fraud allegations.

• Financial instability leading to liquidation.

• Leadership’s industry bans and legal penalties undermine credibility.

• No evidence of active operations or recovery post-2012.

Cautionary Advice: Investors, partners, or stakeholders should avoid engagement with Quantek or its former principals due to its defunct status, history of fraud, and high financial and reputational risks. Any interaction with Javier Guerra or Ralph Patino should be approached with extreme caution, given their SEC sanctions. Verify any claims of current operations through primary sources, as the firm’s digital presence is minimal and outdated.

Key Citations

• SEC.gov, “Quantek Asset Management, LLC, et al.,” May 29, 2012.

• Reuters, “SEC says Miami hedge fund Quantek misled investors,” May 29, 2012.

• InvestmentNews, “SEC: Firm lied about execs’ ‘skin in game’,” June 3, 2012.

• Forbes, “SEC Charges Formerly $1 Billion Hedge Fund With Misleading Investors,” May 29, 2012.

• Rabin Kammerer Johnson, “Quantek Asset Management Settles With SEC for $3.1 Million,” June 6, 2012.

• Quantek Asset Management LinkedIn Page.

• Quantek, LLC Website (quantekllc.com).