Coral Springs, Florida – Attorney Scott Silver of Securities Fraud Attorneys (Silver Law Group) has filed a proposed class action lawsuit in the U.S. District Court for the District of Utah on behalf of investors nationwide who lost money in promissory notes issued by Lehi, Utah-based Hedgehog Investments.
The case, Robert Klingler, individually and on behalf of all others similarly situated, v. Matthew Morrison Bates et al., was filed Jan. 15, 2026, according to the federal court docket.
The complaint names defendants, including Hedgehog CEO Matthew Morrison Bates, Wilfred Jose Manuel Vigil, Joshua Curtis Bishop, Frances Palacios, Stronghold Capital Partners LLC, Stronghold Wealth Partners LLC and others.
Securities Fraud Attorneys alleges that Hedgehog Investments raised millions of dollars through promissory notes by promising investors their funds would be used to help growing companies obtain financing and generate returns. Instead, as alleged in the complaint, investor money was misused in a scheme resembling a Ponzi scheme, with new investor funds used to pay returns to earlier investors.
In May 2025, the Utah Division of Securities issued an emergency order to cease and desist against Hedgehog Investments and affiliated individuals and entities. The order accused the respondents of unlicensed securities activity, securities fraud, making untrue statements and omitting material facts. It found that bank records showed little to no evidence of investor funds being used for the promised purpose of financing growing companies.
The order and related public records also highlighted serious red flags, including Bates’ prior felony conviction and status as a registered sex offender, Vigil’s lengthy criminal history and placement on Utah’s Buyer Beware list, and professional reprimands against other affiliated individuals.
A July 2025 news report on the state action described the operation as using new investor money to pay older obligations, characteristic of a Ponzi scheme.
“As alleged in the complaint, plaintiffs believe this was a massive Ponzi scheme based in Utah that affected investors nationwide,” said Scott Silver, managing partner of Silver Law Group. “Scott Silver is proud to represent the investors and victims in this case and looks forward to helping them recover their investment losses.”
This lawsuit is part of Silver Law Group’s ongoing efforts to hold promoters of fraudulent promissory-note and private investment schemes accountable and to recover losses for defrauded investors across the country.
The lawsuit seeks to proceed as a class action and recover losses for affected investors. No class has been certified, and the court has not ruled on the merits of the allegations.
Securities Fraud Attorneys continues to investigate claims and seeks to represent additional investors who suffered losses in Hedgehog Investments’ promissory notes.
The lawsuit was filed with co-counsel from JurisLaw LLP and Peiffer Wolf Carr Kane Conway & Wise LLP.
CASE INFORMATION
Court: U.S. District Court for the District of Utah
Case: Robert Klingler, individually and on behalf of all others similarly situated, v. Matthew Morrison Bates et al.
Case No. 2:2026cv00043
Filing date: Jan. 15, 2026
Securities Fraud Attorneys (Silver Law Group) represents investors nationwide in securities arbitration, class actions and litigation, focusing on recovery from investment fraud and financial misconduct. Learn more at https://securitiesfraudattorneys.com/.
Securities Fraud Attorneys
11780 W Sample Rd # 103 Coral Springs, Florida 33065
(800) 975-4345
https://securitiesfraudattorneys.com/
Press Contact : Scott Silver
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