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Articles Posted in Alternative Investments

Non-Traded Real Estate Investment Trusts Are Risky, Illiquid 

If you are a retail investor in San Francisco whose broker is recommending that you invest in non-traded real estate investment trusts (non-traded REITs), you should strongly reconsider. 

While often touted as a security that allows investors to make money without having to worry about market volatility – this type of investment is actually still high risk, illiquid, and not suitable for many customers including retail investors, retirees, and other conservative investors with low-risk tolerance levels.

Business Development Company May Have Been Unsuitable For Some Investors 

If you are an investor who suffered losses after your stockbroker recommended the Franklin Square KKR Capital II Fund (FSKR), also known as FS KKR Capital Corp II, you may have grounds for pursuing a broker fraud claim for damages. 

This business development company (BDC), which is a merger of four non-traded BDCs, reportedly was unsuitably recommended to a number of customers and/or the risks were never fully disclosed to them.

Crown Capital Securities Broker Was Recently Named in Four FINRA Arbitration Claims  

Dennis Haywood, a Crown Capital Securities broker, is now named in four customer disputes, all of which were filed in the last two months with the Financial Industry Regulatory Authority (FINRA). Haywood is also a Purepath Wealth Management investment adviser. 

The claimants are accusing him of making inappropriate investment recommendations of non-traded real estate investment trusts (non-traded REITs), non-traded business development companies (BDCs), alternative investments, and variable annuities (VA).

Diamond and Other Kalos Capital Brokers Are Accused of Broker Fraud 

Arni Diamond, who is now a registered representative with Dempsey Lord Smith,  is currently the subject of a pending $200K broker fraud claim accusing him of making unsuitable alternative investment recommendations reportedly while he was a Kalos Capital broker. 

Diamond is one of a number of financial representatives currently or formerly associated with Kalos who has been accused of marketing securities products to investors even when they were inappropriate for them.

SSEK Investigating Financial Advisor That Recommended Unsuitable MLPs To Investors 

Shepherd, Smith, Edwards & Kantas, a law firm specializing in representing wronged investors, is looking into allegations against financial advisors that concentrated their clients in Alerian MLP ETF (“AMLP”) and other oil & gas related master limited partnerships (“MLPs”) amid the significant downturn in oil prices since February.  

What Is The AMLP Fund? 

Texas Stockbroker Purportedly Earned High Commissions From Illiquid Alternative Investments

If you are an investor who was sold alternative investments by First Allied Securities broker William Fox, you may have grounds for an investor claim. Fox, an Austin, TX-based registered representative, has been accused by at least one customer, who already filed a Financial Industry Reguinveslatory Authority (FINRA) claim, of not performing the proper due diligence before recommending that the claimant invest over $2M in retirement funds in illiquid, poor quality alternative investments. 

This included nontraded real estate investment trusts (nontraded REITs), annuities, private placements, equipment leasing, and oil and gas investments. The sale of these investments to the claimant resulted in Fox earning $140K in commissions and an investment advisory fee. 

Market Volatility Forces Arbitrage Funds to Temporarily Close

Reports of arbitrage funds temporarily shuttering in the wake of the impact of the novel coronavirus (COVID-19) on the markets has caused concern for investors. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our investment fraud lawyers are offering free case assessments to help you determine whether you have grounds for an investor claim. We understand the difficulties that US citizens are facing in the wake of COVID-19 and want to assure that we are here to help during this time. 

Structured Notes See Steep Decline During Coronavirus Market Crisis

Just weeks into the financial crisis wrought by the novel Coronavirus (COVID-19), many investors are struggling to deal with the volatile impact of this pandemic not just on the markets but also on their portfolios. 

But what many of them don’t know is that some of these losses might not have been as severe if only their brokers had refrained from making investment recommendations that were unsuitable for them or, at the very least, had properly apprised them of the risks involved. 

The Drop In Oil Prices Could Lead To Losses For Midstream MLP Investors 

With oil and energy stocks continuing to fall – Saudi Arabia’s threat to globally distribute millions of barrels of crude oil in order to win the oil price war over the United States and Russia has only exacerbated these declines. Investors may be wondering – what does this mean for Midstream Master Limited Partnerships (MLPs)? 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our MLP investment fraud lawyers work with investors that have sustained significant losses caused by fraud or negligence. 

National Financial Services Customers Have 60 Days To Transfer GPB Investments 

Five months after announcing that investors of GPB Capital Holdings private placements would no longer be carrying these alternative investments (AI) on its platform, National Financial Services (NFS) is sending letters to customers notifying them that they have 60 days after January 14, 2020, to transfer their GPB Holdings II securities. 

The GPB Holdings II securities must be transferred to another custodian broker or their alternative investment (AI) positions will be registered directly in their name. This is one of the larger GPB private placement funds that, as of June, had reported a 25.4% drop in value. National Financial Services (NFS) is a Fidelity Investments clearing and custody unit. 

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