If you lost money in a private placement, private offering, or other alternative investment because of a broker or financial advisor’s recommendation, the investment may deserve closer review.
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Speak Directly With Attorney Glenn Mazer
Private placements are often complex, illiquid, and difficult to value. Problems can arise when a broker or financial advisor recommends one without adequately investigating the offering or explaining the risks. Warning signs can include
Private placements can involve substantial risk, limited liquidity, and incomplete public information. A closer review may be warranted when the investment was sold without adequately explaining those risks, when the recommendation did not fit the investor’s financial circumstances, or when important facts about the offering, issuer, or salesperson were misrepresented or omitted.
Depending on the facts, responsibility may extend beyond the individual broker or financial advisor. The brokerage firm, investment advisory firm, issuer, promoter, or other entity involved in the offering may also be responsible if it participated in the sale, failed to supervise the recommendation, ignored warning signs, or made material misrepresentations or omissions.
Many investment-loss claims are brought through FINRA arbitration against the financial advisor, brokerage firm, or both. Depending on the facts, claims may involve unsuitable recommendations, misrepresentations, excessive trading, failure to supervise, breach of fiduciary duty, or other misconduct. In some situations, claims may also be pursued in state or federal court.
The right path depends on how the investment was sold, who recommended it, the agreements governing the account, and the deadlines that apply. A careful review of the account records and communications is often the first step in determining whether a recoverable claim exists.
Offering documents, subscription agreements, account statements, emails, text messages, sales presentations, commission records, due-diligence materials, and supervisory records can help show what the investor was told, whether important risks were omitted, and whether the broker or brokerage firm properly investigated the offering before recommending it.
If you lost money in a private placement or private offering, Mazer Law Firm can review what you were told, whether the investment was suitable, what due diligence was performed, and whether the broker, brokerage firm, issuer, or other parties may be responsible. Speak directly with Attorney Glenn Mazer about what happened.
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