Silver Law Group Files Class Action Over Hedgehog Investments Promissory Notes

Lawsuit alleges Utah-based Hedgehog Investments ran a Ponzi scheme, misusing investor funds

Published on Feb. 26, 2026

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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 lawsuit alleges that Hedgehog Investments raised millions through promissory notes by promising to use the funds to help growing companies obtain financing, but instead misused the money in a Ponzi-like scheme, using new investor funds to pay returns to earlier investors.

Why it matters

This case highlights the ongoing problem of fraudulent promissory note and private investment schemes that target unsuspecting investors, often with promises of high returns. The alleged Ponzi-like operation by Hedgehog Investments raises concerns about oversight and accountability in the financial services industry, especially for smaller, lesser-known firms.

The details

According to the complaint, 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. However, the lawsuit alleges that investor money was instead 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, accusing them of unlicensed securities activity, securities fraud, making untrue statements and omitting material facts.

  • The lawsuit was filed on January 15, 2026 in the U.S. District Court for the District of Utah.
  • In May 2025, the Utah Division of Securities issued an emergency order to cease and desist against Hedgehog Investments and affiliated individuals and entities.
  • A July 2025 news report described the Hedgehog Investments operation as using new investor money to pay older obligations, characteristic of a Ponzi scheme.

The players

Scott Silver

Attorney and managing partner of Securities Fraud Attorneys (Silver Law Group), which filed the proposed class action lawsuit.

Matthew Morrison Bates

CEO of Hedgehog Investments, named as a defendant in the lawsuit.

Hedgehog Investments

A Lehi, Utah-based company that allegedly raised millions of dollars through a Ponzi-like scheme involving promissory notes.

Utah Division of Securities

The state agency that issued an emergency order in May 2025 against Hedgehog Investments and affiliated individuals and entities.

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What they’re saying

“As alleged in the complaint, plaintiffs believe this was a massive Ponzi scheme based in Utah that affected investors nationwide.”

— Scott Silver, Managing Partner, Silver Law Group

What’s next

The judge in the case will decide on whether to certify the class action lawsuit.

The takeaway

This case underscores the importance of thorough due diligence and oversight when it comes to private investment opportunities, especially those promising high returns. Investors must be wary of any schemes that resemble a Ponzi structure, where new money is used to pay off earlier investors.