Allegations of Unsuitable Investment Recommendations Involving This Private Equity Real Estate Investment

The law firm Shepherd Smith Edwards and Kantas is investigating brokers who unsuitably recommended risky, illiquid Participant Capital private equity real estate funds to retail investors, potentially driven by high commissions of up to 10%. Following a recent FINRA arbitration award of nearly $460,000 against a broker-dealer over Participant Capital losses, the firm is offering contingency-based legal representation to help affected investors recover their funds.

If you are an investor who suffered losses in Participant Capital Growth Fund, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. We are continuing to investigate claims that brokers may have unsuitably recommended this alternative investment, and other Participant Capital products, including Participant Capital Fund I, to customers.

Recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Tigress Financial Partners to pay almost $460,000 to a Chinese investor who lost money in a Participant Capital private placement. This woman trusted the broker-dealer with her savings and she went on to suffer serious losses in this risky, speculative, illiquid product. The Claimant sued Tigress Financial for unsuitability, misrepresentations and omissions, negligence, breach of contract, breach of fiduciary duty, violations of California’s Blue Sky Law, and more.

What Is Participant Capital Growth Fund and What Are The Risks To Investors?

• This private equity real estate investment product is managed by Participant Capital Advisors LLC, which is a registered investment adviser.
• The Fund’s asset focus is on hospitality, multi-family residential, and large-scale mixed-use properties and developments that are mostly in Florida and the Sun Belt.
• Investing in real estate private equity can be high-risk, especially when the market fluctuates downwards or there are construction issues.
• Serious illiquidity issues abound, including real estate holdings that can’t be quickly sold without severe discounts or depressed valuations, limited redemption or withdrawal options, and more.

Participant Capital Properties Have Included:

• The Legacy Hotel & Residences in Miami
• The Grand Reserve in Puerto Rico
• The Assemblage in St. Petersburg, FL
• Elevate in Dania Beach, FL
• Tuscany Village in Florida
• Grand Reserve Luxury Hotel I in Puerto Rico
• Grand Reserve Luxury Hotel II in Puerto Rico
• Aventura Master Plan in Florida
• Nautilus 220 in Lake Park, FL

How Much Did Brokers Earn From Selling Participant Capital To Investors?

It has come to our attention that brokerage firms are making 7-10% in commissions and fees, as well as a possible 1-3% due diligence fee. Shepherd Smith Edwards and Kantas are investigating whether these high fees may have compelled some brokerage firms to unsuitably recommend a Participant Capital Fund to retail investors and conservative retirees, misrepresent the risks, disregard customers’ best interests, or commit some other type of broker misconduct or negligence.

Why Hire Our Trusted Private Placement Loss Lawyers Over Your Participant Capital Losses?

• All Participant Capital offerings and funds are set up as private placements. These are complex products that should only be sold to accredited investors. Shepherd Smith Edwards and Kantas is a trusted private placement loss recovery law firm.
• Our seasoned securities lawyers understand how these investments operate and the ways in which brokers take advantage of customers by unsuitably marketing and selling them to customers.
• We know how to maximize an investor’s chances for full financial recovery.
• When you hire our private placement investor attorneys, you are retaining everyone at our firm to fight for you. We bring more than 100 years of collective experience in securities law and the securities industry to every case we represent.

Explore Your Legal Options and Discuss Your Participant Capital Fund Losses Today:

Because we work on a contingency basis, we are only paid for our securities representation if we win an award or negotiate a settlement for you. To schedule your free, no obligation case consultation, call (800) 259-9010 or reach out to us here.