Private Placements
Private placements are investments that are generally non-traded and illiquid. Many of them are suitable only for the most sophisticated and affluent investors. Companies that raise money from investors through private placements often have minimal disclosure requirements. Due to the lack of transparency, investors typically have to rely on their financial advisors to conduct the “due diligence” process as to the issuer and the private placement. The due diligence process is required in order for the financial professionals to determine whether such investments are safe and appropriate for each investor.
We represent investors who were sold private placements that are either unsuitable for their investment profile, were offered in violation of the securities rules and regulations, or are outright fraudulent. While most private placements are legitimate, those who are fraudulent can wipe out an investor’s life savings. We have seen fraudulent or questionable private placements issued by entities such as:
Real Estate Investment Trusts (“REITs”)
Oil and Gas companies
factoring businesses
Hedge funds
Technology companies
Import-export businesses
Mortgage companies
Insurance agencies
Those questionable or outright fraudulent private placements had two things in common: (1) they offered financial advisors sales commissions that were far higher than the industry norm, and (2) they were subjected to an inadequate due diligence process, if at all, before being offered and sold to investors.
Securities broker-dealer firms and financial professionals have a duty to verify the investments they recommend to their customers, before making such recommendations. Any red flags surrounding the offering and/or the issuer must be thoroughly investigated. Also, the investor’s risk profile must be taken into account before an investment recommendation is made. We go after such financial professionals and/or their employers when they fail in their duties to adequately vet the investments they recommend and ensure that their customers are sold suitable investment products.
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We have represented thousands of victims of investment fraud, against financial institutions that failed to discharge their duties and protect the investing public. Each case is different and our past successes are not indicative of future results; we will be glad to review your case and advise you as to your options, at no charge.
If you believe you lost money because of investment fraud, it is important to take action. Contact Peiffer Wolf Carr Kane & Conway for a FREE Consultation by calling 585-310-5140 or by filling out an online Contact Form on this website. We can hear your situation and explore your legal options. There is no charge for this evaluation.
