Contact Shepherd Smith Edwards and Kantas Alternative Investment Loss Recovery Attorneys To Explore Your Legal Options
If you are an investor who suffered losses in any of the following Red Oak Capital Funds, contact us today to schedule your free case consultation:
- Red Oak Capital Fund Income Opportunity Fund II
- Red Oak Capital Fund II
- Red Oak Capital Fund III
- Red Oak Capital Fund IV
- Red Oak Capital Fund V
- Red Oak Capital Fund VI
- Red Oak Capital Fund VII
- Red Oak Capital Intermediate Income Fund
Crescent Securities Corp is the managing broker-dealer for these funds. Other brokerage firms also may have sold Red Oak Capital Funds to customers.
Shepherd Smith Edwards and Kantas Alternative Investment Loss Recovery Attorneys (investorlawyers.com) can help you determine whether you have grounds for an investment loss recovery claim against the broker that sold you these risky alternative investments.
What Is Red Oak Capital Holdings?
This is a specialized private equity firm concentrated on commercial real estate debt and offers bridge loans. Red Oak Capital Holdings’ Funds are supposed to provide income to investors through secure, short-term, high-yield mortgage assets. Red Oak Capital Funds are typically structured as private placement bonds or LLCs, as well as Regulation D offerings.
Why Are Investors Worried About Red Oak Capital Fund III?
Last year, management for Red Oak Capital Fund III announced that it would stop interest payments to investors and start liquidating its real estate loan portfolio. They acknowledged a cash flow and reserve problem that made it hard to service bondholder obligations, originate new loans, and handle redemption. According to an independent auditor’s review, there was “substantial doubt” that the Fund could continue as a viable entity.
Red Oak Capital Fund III investors were told that because liquidation efforts could last into the middle of 2027, getting back their money could take years. This could lead to a partial or total loss of their investment.
Red Oak Capital Fund III was promoted as having the state goal of providing income through loans tied to commercial real estate projects. Interest payments were supposed to be made to investors, who were told this was a chance to make money and diversify their portfolio outside typical stocks or bonds.
Can You Sue Your Broker For Your Red Oak Capital Fund Losses?
Alternative investments, including private placements and Regulation D offerings and real estate-related investments, are generally unsuitable for retail investors. They can be risky, illiquid, and lead to serious losses.
If your financial advisor unsuitably recommended a Red Oak Capital Fund to you, misrepresented the risks, did not disclose the investments’ illiquid nature, or was negligent in some other way, you may be able to sue the brokerage firm for damages.
We Are Trusted Alternative Investment Loss Recovery Attorneys
Shepherd Smith Edwards and Kantas Alternative Investment Loss Recovery Attorneys represent investors against broker-dealers. We have the skills, knowledge, and resources to handle even the most complex claims against the largest Wall Street firms. More than 90% of our clients have secured full or partial financial recovery in awards or settlements. This is not the kind of investor claim that you want to make without seasoned securities lawyers fighting for you.
Call our Alternative Investment Loss Recovery Attorneys at (800) 259-9010 to request your free case consultation.