GK7% Investment Holdings Bond Investors Were Promised a 7% Interest Rate, But Instead May Have Sustained Serious Losses
Misrepresentations and Omissions May Have Been Made About The Risks
The Shepherd Smith Edwards and Kantas Bond Loss Law Firm (investorlawyers.com) is continuing to offer free, no obligation case assessments to investors who were sold GK 7% Investment Holdings bond investments by their broker-dealer. These unsecured bonds, backed by speculative real estate, were unsuitable for retail investors a conservative retirees from the start.
Like its name implies, GKHI 7% Bonds promised a 7% interest rate to investors, who may have been led to believe it was an income-generating investment. The bonds appear to have been offered under Regulation A+, which lets companies raise funds from both non-accredited and accredited investors.
This means that retail investors and inexperienced investors may have been sold these illiquid, risky investments even though they may have been unsuitable for them.
GK7% bondholders were therefore not expecting to be asked in 2022 to trade in their bonds or risk default, payment delay, or no issuance. That trade was to extend the maturity date of the bonds from September 30, 2022, to September 30, 2025, as long as at least 90% of bondholders agreed, or bankruptcy could result.
According to a filing with the SEC, GK Investment Holdings reported that about 80% of GK 7% bondholders exchanged their older bonds for newer ones.
Our Bond Loss Law Firm is investigating whether, in all of this, serious investment losses occurred.
JCC Advisors/JCC Capital Markets acted as the managing broker-dealer when it came to getting these debt instruments out to investors. Other brokerage firms may also have been involved in marketing and selling GK7% bond investments to customers.
About $50M in these GK Investment Holdings bonds were issued. The minimum investment purchase was at least 5 bonds for $5,000. ($1000/bond).
There is some concern that brokerage firms may not have fully apprised GK 7% bond investors of the risks. The impact of the COVID-19 pandemic on commercial real estate didn’t help matters.
How Can Our Bond Loss Law Firm Help?
The Shepherd Smith Edwards and Kantas Bond Loss Law Firm can help you assess the cause of your portfolio losses and whether unsuitable GK 7% investment recommendations may have been a factor. Misrepresentations and omissions, overconcentration, negligence, or a failure to supervise also could have played a part.
If we do determine that you have grounds for an investment loss recovery claim against your broker-dealer—and we decide to work together—our bond fraud attorneys will prepare a solid investor lawsuit on your behalf and file your case in FINRA arbitration, which is where disputes between brokers and customers are brought.
FINRA arbitration is different from going to court. You want savvy FINRA lawyers like ours who know how to maximize an investor’s chances for financial recovery in this legal forum.
The Shepherd Smith Edwards and Kantas Bond Loss Law Firm is one of the most experienced and well-respected securities law firms in the United States. We are committed to providing not just quality securities representation, but also a quality experience to each of our clients.
Call our Bond Loss Law Firm at (800) 259-9010 or fill out this contact us form.