Shepherd Smith Edwards and Kantas Is Representing This Claimant, Who Is Suing This Broker-Dealer For Up to $500,000

A retired Georgia couple represented by law firm Shepherd Smith Edwards and Kantas has filed a FINRA arbitration lawsuit against Alexander Capital, seeking up to $500,000 for nearly total principal losses in an unsuitable, high-risk private placement limited partnership. The suit alleges that now-barred broker Roger Allan Roemmich misled the conservative investors regarding the risks and high upfront fees of the investment, which funded an overseas electric vehicle startup.

A Dublin, GA couple is suing Alexander Capital for losses they sustained in the Alexander Capital – Series Delta-2 that was sold to them by now-barred broker Roger Allan Roemmich. The Claimants, both retirees, are looking at a near-total loss of their principal. They filed their six-figure lawsuit in FINRA arbitration.

Shepherd Smith Edwards and Kantas Private Placement Investor Attorneys (investorlawyers.com) is representing these retiree investors. We are also looking to speak with other investors who may have suffered losses in the Alexander Capital – Series Delta 2. This is a limited partnership (LP) that is invested in a foreign startup called Tevva, which is looking to manufacture electric commercial vehicles. Connected to this particular broker-dealer, it was an unsuitable investment recommendation for these seniors from the start.

Our Clients are investors who made it clear that they didn’t want to take on any undue risks because their money was for retirement. They contend that they were assured by Roemmich that not only was this investment safe,  but also that there would be huge returns.

According to Roger Roemmich’s BrokerCheck CRD, other former customers of his are also suing over losses they sustained while working with him. They are pursuing a collective more than $11M, with one of the investor lawsuits listing a requested $7.5M

How Much Does Alexander Capital – Series Delta-2 Charge Investors in Upfront Fees?

Meantime, the Claimants lost 13% of their capital at the outset, seeing as Alexander Capital – Series Delta-2 charged them:

• A 5% initial management fee
• A 3% yearly management fee.
• An 8% fee that was paid to Alexander Capital and its broker.

Not only that, but this limited partnership is a private placement and should never have been sold to conservative retirees. If the broker-dealer felt that these two investors needed exposure to alternative investments—they most certainly did not—the firm could have easily recommended a publicly-traded venture capital mutual fund that was more appropriate for them given their investing profile, financial goals, and risk tolerance level.

In their private placement loss recovery claim, our Clients are alleging unsuitability, misrepresentations and omissions, negligence, gross negligence, breach of fiduciary duty, breach of contract violation of Regulation Best Interest, and more.

They are pursuing damages for losses suffered, as well as lost opportunities incurred, statutory damages, punitive damages, rescission of transactions, pre-award and pre-judgment interest, all proceeding and recovery costs, and any and all other available relief.

Why Are Private Placements Unsuitable For Retail Investors and Most Retirees?

• These are unregistered securities offerings that should only be sold to accredited, experienced investors.
• Private placements, including limited partnerships, are high-risk and very illiquid.
• They are usually start-ups with a limited track record.
• It is not uncommon to have limited disclosures about a private placement’s internal finances.
• Values issued are usually from third parties or from the company itself.
• These alternative investments tend to pay brokerage firms high commissions for marketing and selling them to customers.

Why Hire Trusted Private Placement Investor Attorneys To File Your Claim?

Shepherd Smith Edwards and Kantas represents investors who have suffered losses in complex investments, including limited partnerships and other private placements.

These can be tough cases to prove and win, which is why you need seasoned securities lawyers on your side.

Talk To Us About Your Alexander Capital – Series Delta-2 Losses

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