Attention: Priority Income Fund Investors, Shepherd Smith Edwards and Kantas Is Investigating Claims of Losses
You May Have Grounds For Pursuing Damages From The Broker-Dealer or Advisor That Sold You This Risky Alternative Investment
Shepherd Smith Edwards and Kantas (investorlawyers.com) is investigating investor losses involving Priority Income Fund. As a result of speaking with other investors, our firm has learned that Priority Income Fund has lost roughly half of its value in recent months, creating large losses for unsuspecting investors.
This alternative investment, launched by Behringer Harvard and Prospect Capital Management in 2013, was set up to invest in collateralized loan obligations (CLO) backed by high-risk corporate debt. Since Priority Income Fund is a private investment, it is not traded on any exchange. That results in two significant risks. First, Priority Income Fund is illiquid, meaning investors cannot simply sell Priority Income Fund when they want and could be locked in the investment indefinitely, having no access to the funds. Second, because Priority Income Fund is not traded, investors do not know its actual value. While Priority Income Fund does publish a monthly Net Asset Value (NAV), that value is based on the estimation of the managers of Priority Income Fund of the value of the fund’s investments, but there is no way to verify that value or to know what investors’ fund shares are really worth.
Priority Income Fund is promoted as an income-focused investment to investors, including those who are now alleging they were never fully apprised of the limited liquidity and substantial exposure to volatility to which they were making themselves vulnerable. Priority Income Fund was only ever appropriate for experienced investors needing willing to take extreme risks and have no need for the funds invested in Priority Income Fund, since it is illiquid. However, our securities law firm has also been speaking to retail investors and retirees who have sustained serious losses in this alternative investment.
If you suffered serious Priority Income Fund losses, call (800) 259-9010 or contact us online to schedule your free case consultation.
What Are The Risks Involving Priority Income Fund
Priority Income Fund indicates that investments in the fund may be considered speculative and involve a high degree of risk, including the risk of a substantial loss of investment. Composed mostly of private loans in private businesses. According to the fund’s prospectus, “at least 80%” of the assets of the fund are invested in “debt rated below investment grade … often referred to as ‘junk’ ….” Additionally, private funds like Priority Income Fund charge investors high fees and commissions. Priority Income Fund lists a number of other risks, including that the fund has a limited operating history and that there is a possibility of significant leverage in the Fund itself and its CLOs.
You May Have Ground For A Priority Income Fund Recovery Loss Recovery Claim Against Your Broker
Unfortunately, the high risks involved in this junk fund do not appear to have dissuaded brokers from unsuitably recommending Priority Income Fund to customers. Misrepresentations and omissions, negligence, gross negligence, breach of fiduciary duty, breach of contract, or a failure to supervise also may be involved.
Shepherd Smith Edwards and Kantas recently filed a seven-figure Financial Industry Regulatory Authority (FINRA) arbitration claim against United Planners’ Financial Services of America A Limited Partnership (United Planners’) after one of its brokers unsuitably marketed and sold alternative investments, including Priority Income Fund, to a retired couple.
Rather than going after Priority Income Fund, which appears to be in financial trouble, your best chance for financial recovery is to explore your legal options with our seasoned alternative investment loss recovery lawyers. You may be able to pursue damages from your financial advisor or their firm.
With over 100 years of collective experience in securities law and the securities industry, we have the knowledge, skills, and experience to provide investors with quality securities representation and personalized attention. More than 90% of our clients have secured full or partial financial recovery in arbitration, mediation, and litigation.