SSEK Brokerage Firm Arbitration Law Firm Assist Shopoff Land Fund Investors
Shopoff Land Fund Investors May Be Able to File FINRA Lawsuits Against Brokerage Firms
Broker Negligence?: Private Placement Funds Allegedly Unsuitably Recommended to Customers
Private real estate investment companies can be a risky proposition for investors. They are not a good fit for everyone, including many retail customers and retirees with conservative investing goals. Unfortunately, it has come to the attention of our knowledgeable private placement investor loss attorneys at Shepherd Smith Edwards and Kantas (investorlawyers.com) that there are investors whose financial advisor may have unsuitably recommended one or more of the Shopoff Land Funds from Shopoff Realty Investments.
Shopoff investments are alternative investments, may be high-risk, and are likely unsuitable for many inexperienced investors. Yet there are concerns that brokerage firms may have prioritized the high commissions that they stood to earn from selling this type of alternative investment instead of making sure that investing in the Shopoff Funds met the investing goals and other needs of some retail customers.
According to sources, brokerage firms and their registered representatives may have been paid fees or commissions of up to greater than 13% and at least 3% in “due diligence fees” for marketing and selling the Shopoff Funds to customers.
Shopoff offerings have included:
- Shopoff Land Fund I
- Shopoff Land Fund II
- Shopoff Land Fund III
- Shopoff Land Fund IV
- Shopoff Land Fund V
- Shopoff California Commercial Fund
- Shopoff Group
- Shopoff Realty Investments
- Shopoff Commercial Growth and Income Fund
- Shopoff Commercial Growth and Income Fund II
- Shopoff Commercial Growth and Income Fund III
- Shopoff Enterprises
- Shopoff Enterprises Notes
- Vertimass, LLC
- SCF – 4440 VKA, LLC
- SCF – 2100 Q Street, LLC
- SCGIF II – Franklin, LLC
- SCGIF II – Skypointe, LLC
- SCGIF II – Des Plaines, LLC
- TSG Fund IV
While there were previous allegations that were brought by the Financial Industry Regulatory Authority (FINRA) against Shopoff Securities, William Shopoff, and Stephen Shopoff in 2019—they were accused of fraudulently selling about $12.57 million of promissory note investments to 29 investors, allegedly inflating William’s assets, and not disclosing that some of the proceeds purportedly went to covering his personal expenses and paying back previous investors in Ponzi-like fashion—those charges have since been dismissed. However, Shopoff, its owners, and related entities allegedly have a history of issuing potentially problematic private offerings. It doesn’t help that this type of investment offering is exempt from needing to register with the US Securities and Exchange Commission (SEC) and lacks transparency.
In 2022, our savvy investor loss lawyers are continuing to receive calls from Shopoff investors seeking to explore their legal options.
Should Brokerage Firms Be Held Accountable For Shopoff Investor Losses?
Private placements tend to be riskier and more complex than traditional investments and should only be recommended to high-net-worth, experienced customers. Yet there may be many retirees and retail clients to whom investments in one of the Shopoff funds were unsuitably sold.
Broker-dealers have a duty to conduct proper due diligence on any product or trading strategy to ensure its suitability for a customer given their investing goals, age, net worth, and risk tolerance level. When failure to perform such due diligence, or ignoring customers’ best interests gets them involved in investments that are inappropriate for them, serious investor losses may result.
How Can Your Private Placement Investor Loss Lawyers Help You?
Shepherd Smith Edwards and Kantas can help you determine whether your brokerage firm should be held liable for marketing and unsuitably selling you Shopoff investments that resulted in your investment losses. Should we agree to work together, our experienced securities fraud attorneys will conduct a thorough discovery process and gather the necessary evidence to file a solid FINRA lawsuit so you can sue your broker-dealer for damages. In the event that you don’t have grounds for a brokerage firm negligence claim, we will let you know.
How Can You Reach Our Knowledgeable Brokerage Firm Arbitration Law Firm?
Call Shepherd Smith Edwards and Kantas, a Brokerage Firm Arbitration Law Firm at (800) 259-9010 today.