Articles Posted in Alternative Investments

New Jersey Widow Sues Cambridge Investment Research Over Alternative Investment Losses 

Elderly Investor Seeks Up to $500K For LJM Preservation and Growth Fund, FS Energy & Power Fund, Highlands REIT, InvenTrust PPTYS, and Other Losses

If you suffered losses in alternative investments that were recommended by your financial advisor, contact the Shepherd Smith Edwards and Kantas Alternative Investment Loss Attorneys (investorlawyers.com) today. These high-risk, illiquid investments are unsuitable for many conservative and elderly retirees. Yet, many brokers continue to market and sell them to these investors in order to earn high commissions.

Did Your Broker Unsuitability Recommend Alternative Investments? 

Our Skilled Broker-Dealer Negligence Lawyers Are Investigating Centaurus Financial Advisor Valentino Scott

Alternative investments can be high-risk and they are generally unsuitable for most retail customers and conservative retirees. They also aren’t always suitable even for high-net-worth investors or accredited investors. A lot depends on an investor’s age, risk-tolerance level, portfolio, financial goals, and investment time horizon.

Customers of Berthel Fisher Sought $32.1M in Damages From Brokerage-Dealer

Our Experienced Alternative Investment Fraud Lawyers Are Investigating Investor Losses

According to the yearly audited financial statement submitted by Berthel Fisher to the US Securities and Exchange Commission (SEC) in March, the broker-dealer concluded 2022 with about $32.1M in pending investor loss claims. While it is unclear which investments were specifically involved, as InvestmentNews reported, Berthel Fisher has a long history of selling alternative investments to customers. On multiple occasions, these investment recommendations were investors for whom these were allegedly unsuitable given their financial goals.

Did You Invest in Private Placements That Were Too Risky For You?

Our Alternative Investment Loss Lawyers Are Investigating Brokers That May Have Unsuitably Marketed Legion Capital Corp. To Customers

Private placements are typically risky, illiquid investments and ideally should only be recommended to accredited investors that meet certain income level thresholds and/or are financially sophisticated. That said, even experienced, wealthy investors fall victim to unsuitable recommendations by a broker.

$500M of This Risky Private Placement Investment May Have Been Sold By Brokerage Firms 

More than two years after the US Securities and Exchange Commission (SEC) announced that it had filed an emergency action against Complete Business Solutions (d/b/a Par Funding), many of those who collectively invested up to $500M in its alternative investment offerings are still grappling with how to recover their investor losses.

The Broker Misconduct Lawyer teams of Shepherd Smith Edwards and Kantas (investorlawyers.com) are speaking with these investors, many of whom may have been unsuitably sold these risky unregistered securities by brokers. If this is the case for you, then you may have grounds for filing a Financial Industry Regulatory Authority (FINRA) lawsuit against your broker-dealer for damages.

Hundreds of Broker-Dealers May Have Sold Up to $2B of High-Yield Junk Bonds 

InvestmentNews reports that according to an industry insider, GWG Holdings may have issued up to $2B of high-yield junk bonds in recent years. While Emerson Equity is the managing broker-dealer for the GWG Issuer, there may have been hundreds of other broker-dealers that also sold L-Bonds to investors. 

In a January 15, 2022 filing with the US Securities and Exchange Commission (SEC), GWG disclosed that it hasn’t been able to issue $13.6M in principal payments and interest that it owes to L Bond investors. The Dallas-based alternative asset manager has a 30-day grace period to complete the payments or risk default. 

Founder Faces Charges Over $1.8B Ponzi Scam and Wants GPB Capital to Pay His Legal Fees

Beleaguered private equity firm GPB Capital Holdings is back in the news. This time its founder and former CEO, David Gentile, is suing the company in Delaware Chancery Court. 

Gentile, who is facing criminal, civil fraud, and conspiracy charges related to the over $1.8B Ponzi scam that GPB is accused of perpetuating, wants his legal defense fees paid for and not out of his own pocket.

Barred Stockbroker is Accused of Running Ponzi Scam That Defrauded Elderly Investors

Felix S. Chu, a former NYLIFE Securities registered representative, is currently facing at least two customer disputes in which the claimants are seeking $5,230,000 in damages. Chu was barred by the Financial Industry Regulatory Authority (FINRA) last year. He has been accused of running a Ponzi scam involving promissory notes that defrauded investors, including seniors.  

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating claims of losses by former investors of ex-NYLIFE Securities financial advisor, Felix Chu. If you are one of these investors, call (800) 259-9010 today.

Benefit Street Partners Realty Trust Investors May Be Looking At More Losses 

If you are an investor whose broker unsuitably recommended Benefit Street Partners Realty Trust, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. 

On July 26, this publicly registered non-traded real estate investment trust (non-traded REIT) announced its merger with Capstead Mortgage Corporation. The combined company will be named Franklin BSP Realty Trust and is set to become the fourth biggest commercial mortgage REIT with a common stock that will trade on the New York Stock Exchange.

Non-Traded REIT Seeks To Restructure $1.3B in Unsecured Debt

If you are an investor whose broker recommended that you invest in Hospitality Investors Trust (HIT), you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. 

Hospitality Investors Trust used to be called American Realty Capital Hospitality Trust (ARC Hospitality Trust). In May 2021, the publicly registered non-traded real estate investment trust (non-traded REIT) filed for Chapter 11 Bankruptcy protection as it seeks to restructure its $1.3B in unsecured debt. 

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