Investment Loss Lawyer: Know When You Need to Hire One

What Is The Investment Grade Fund I and Why Are Investor Losses A Concern?

Broker-Dealer Negligence Allegations Surface Following Private Placement Losses for Investors. If you are an investor whose broker recommended that you purchase shares in IGF Investment Grade Fund I, LP, you may be struggling with whether you need to hire an Investment Loss Lawyer. This real estate core-plus fund, run by IGF Partners, was marketed and sold by brokerage firms all over the United States.

IGF Fund I investors were told that they could expect 6% yearly returns that were to be paid monthly and that two-thirds of the income would be tax-deferred. Now, however, there are growing concerns that brokerage firms may have been negligent when marketing and selling this IGF Fund to customers. This is why Shepherd Smith Edwards and Kantas (investorlawyers.com) are currently speaking to investors to help them determine whether they have grounds for an investor loss claim.

Our Investment Loss Lawyer Team Is Investigating Brokerage Firms That Sold IGF Investment Grade Fund I

This is a real estate investment fund and private placement that invests in single-tenant, net-leased commercial properties. IGF Investment Grade Fund I’s initial offering of $60M was in March 2016. 6% yearly returns were touted to potential investors. However, as of August 2018, the fund had raised just $11.7M.

In early 2019, IGF Fund told investors it was extending its offering period from the end of December 2018 to April 30, 2019. Meanwhile, the Fund and brokers allegedly continued to aggressively market this private placement to investors even though insufficient capital would impede the Fund’s ability to buy properties and, in turn, limit or even erase, investor returns.

Broker-dealers that sold IGF Investment Grade Fund I should have conducted the proper due diligence to ensure that not only was this private placement suitable for a customer but also that it was a viable opportunity that could deliver on what investors were promised.

The fact that IGF Fund I was having problems raising enough capital should have been a red flag warning financial advisors not to zealously market this to cutometers. Unfortunately, because private placements tend to pay brokers and their firm’s high commissions—often up to 10% to 15%–the lure of making this money can trump looking out for investors’ best interests.

Brokerage Firms We Are Investigating For Selling IGF Fund I

DH Hill Securities
Landolt Securities
Axiom Capital Management
Moloney Securities
Great Point Capital
Shopoff Securities
Arete Wealth Management
Allen C. Ewing & Co.
Sutter Securities
Whitehall Parker Securities
McNally Financial Services
Oaktree Securities
Freedom Investors
KCD Financial
Colorado Financial Services
Capital Financial Services
Coastal Equities
Purshe Kaplan Sterling Investments
NI Advisors

This private placement fund should have been sold to accredited investors barring certain exceptions. Accredited investors should have at least $200K yearly income (or $300K joint income over the past two years) or a $1M net worth (not including their home). They also should be sophisticated, experienced investors who are able to handle a certain level of risk.

Brokers should definitely have refrained from marketing IGF Investment Grade Fund I to retail customers or senior investors with conservative investing goals and low-risk tolerance levels.

Why Financial Advisor Negligence Can Be Grounds For a FINRA Lawsuit and you might need to hire an Investment Loss Lawyer

It is broker negligence to make unsuitable investment recommendations to customers, fail to conduct the proper due diligence into a financial product or its issuer, make misrepresentations and omissions about the risks, or disregard investors’ best interests in order to make higher commissions.

Acts of broker-dealer negligence by the firm and/or its financial advisors can be grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim if significant investor losses result.

This is not the type of claim that you want to pursue without experienced FINRA arbitration lawyers representing you. To schedule your free, no-obligation case assessment, call Shepherd Smith Edwards and Kantas at (800) 259-9010 today.