Our CLO-Fund Recovery Lawyers Are Representing This Wisconsin Retiree

If you suffered financial damages from unsuitably recommended alternative investments, hiring experienced Priority Income Fund Recovery Lawyers can help you hold your financial advisor accountable through FINRA arbitration. The legal team at Shepherd Smith Edwards and Kantas works to investigate broker negligence and seek full compensation for investor losses.

Shepherd Smith Edwards and Kantas (investorlawyers.com) recently filed a FINRA arbitration claim against Centaurus Financial on behalf of a Milwaukee investor who sustained serious losses in Priority Income Fund. Our Client is a septuagenarian who entrusted his assets to this brokerage firm. He alleges that his Centaurus Financial broker, whom he met at a financial seminar, went on to unsuitably place his money in this non-traded closed-end fund.

This retiree relied on his Centaurus Financial advisor to give sound investment advice. When he questioned the substantial commissions he would have to pay, asking if returns from Priority Income Fund would offset the cost, his broker reassured him that they would.  Now this retiree is suing for up to $500,000 in damages.

In his Priority Income Fund loss lawsuit, our Client is alleging unsuitability, misrepresentations and omissions, breach of fiduciary duty, breach of contract, negligence, breach of fiduciary duty, vicarious liability, and more.

Why Is Priority Income Fund A Too Risky Investment For Retirees and Other Retail Investors?

• This is a speculative investment involved mostly in high-risk equity and junior tranches of Collateralized Loan Obligations (CLOs).
• Because underlying assets use high debt levels, there is high leverage involved. While this can maximize gains, it can also increase losses.
• This is a non-traded alternative investment with illiquid shares.
• Its Net Asset Value (NAV) /share has seen a decline in the last two years from $10.85/share in June 2024 down to $3.15/share in July 2026.
• There were high upfront fees charged for this investment from the start.

Shepherd Smith Edwards and Kantas is representing many Priority Income Fund investors against brokerage firms in FINRA arbitration. A lot of our Clients are saying that their financial advisors never fully explained the risks involved in this closed-end CLO-concentrated fund.

Even as far back as 2015, SLCG Economic Consulting described Priority Income Fund as worse than a non-traded real estate investment trust and not just because of its leveraged loans to below investment grade corporations. SLCG noted the Fund’s lack of transparency, high upfront fees, illiquidity, ongoing management fees, and more.

Brokers know that CLO-related investments can be complex, opaque, and misleading, and there may be the risk of total loss for an investor. One can’t help but wonder if the high fees they can earn is what compels some financial advisors to sell these alternative investments even when it’s a bad fit that places investors in a vulnerable financial position.

Why You Should Hire Skilled Securities Lawyers To Represent Your Priority Income Fund Case

• Due to the complex nature of this closed-end fund, it is important that you hire a trusted securities law firm that knows what they are doing. Shepherd Smith Edwards and Kantas is well-informed about Priority Income Fund, the losses investors have sustained, and why brokers should be held liable.
• You will have to file your claim in FINRA arbitration, and you want knowledgeable FINRA lawyers that have a record of winning awards against brokers in this legal forum.
• Your broker that sold your Priority Income Fund investment will have their own legal representation.

Speak To One of Our Priority Income Fund Recovery Lawyers Today

Call (800) 259-9010 or contact us online to schedule your free case consultation.