Claimants Are Pursuing Up to $500,000 in Financial Recovery

Shepherd Smith Edwards and Kantas has filed a FINRA arbitration claim against RBC Capital on behalf of two investors seeking up to $500,000 in damages for losses in Velocis Fund III. The lawsuit alleges that the brokerage firm unsuitably recommended this risky, illiquid, and speculative private real estate fund to retail investors who were misled into believing it was a safe investment.

Shepherd Smith Edwards and Kantas Velocis Fund III Investor Lawyers (investorlawyers.com) are representing two Claimants who are suing RBC Capital over losses they sustained in the Velocis Fund III. Now they are pursuing up to $500,000 in damages, along with any interest and costs.

These are two investors who entrusted this brokerage firm and its financial advisor to properly invest and manage their savings and retirement money, including not exposing them to undue risk. Instead, RBC Capital recommended a limited partnership, the Velocis Fund III, which was too risky and illiquid for these Claimants.

In their Velocis Fund III recovery lawsuit, the investors are alleging unsuitability, misrepresentations and omissions, violation of Regulation Best Interest, breach of contract, securities statute violations, breach of fiduciary duty, negligence, gross negligence, vicarious liability, lack of supervision, and more.

Velocis Fund III

• This unlisted, speculative investment is a vintage real estate value-added fund that invests in properties in the SW and SE United States.
• Run by Velocis, this privately traded investment is involved mostly in value-added properties involved in the beauty industry and the oil and gas industry. It also invests in multi-family residential properties, amenities, office spaces, and medical-related properties.
• No longer open to new investors, Velocis Fund III raised $298M – $300M in equity.

Why Are Velocis Fund III Investors Suing for Damages?

This is an investment that shouldn’t have been sold to retail customers and unsophisticated investors. Unfortunately, it has come to our attention that not only experienced and accredited investors may have been sold this private placement:

• Unsuitable investment recommendations were made.
• Investors are telling us they were reassured all recommendations were safe and low-risk, which was a misrepresentation or omission of the actual risks.
• Selling a product that is not in the best interests of a customer is a violation of Regulation Best Interest by a broker.
• Even as Velocis Fund III investors are looking at serious losses, the brokerage firms that sold this investment earned a lot in fees and commissions.

Why Is It Important To Speak With Skilled Securities Lawyers About Your Velocis Fund III Losses?

• Determining whether your investment losses warrant grounds for suing your financial advisor can be difficult, which is why availing of a free, no-obligation case consultation with Shepherd Smith Edwards and Kantas can help. We are seasoned securities attorneys who know how to assess what happened and whether you should file a claim for financial recovery.
• Trying to resolve this on your own, without legal representation, and directly with your brokerage firms could hurt you in the long run. Most brokers would rather deny liability, even blame you, than admit to wrongdoing or negligence on their part.
• If you decide to sue your stockbroker, you will have to do this in FINRA arbitration. It is important that you retain a skilled FINRA securities law firm that knows how this legal venue works and how to maximize your financial recovery.
• FINRA arbitration rulings are final—except in rare and specific instances—you want to make sure that your Statement of Claim is right and complete from the start.

 

Do You Want To Speak With One Of Our Knowledgeable Velocis Fund III Investor Lawyers?

Call our Velocis Fund III Investor Lawyers at (800) 259-9010 or contact us online.