Recovery of Leaf Equipment Leasing Fund Losses

Thursday, February 14th, 2013

The White Law Group is investigating the sale of LEAF Equipment Leasing Fund III by brokerage firms that may have failed to perform adequate due diligence when recommending this investment to clients.

Prior to making recommendations to an individual investor, brokerage firms are required to disclose all the risks of an investment.  Brokerage firms must also only recommend an investment that is suitable for an individual investor given that person’s age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through securities arbitration.

LEAF Equipment Leasing Fund III is a limited partnership formed in 2006 and publicly offered by Leaf Financial Corporation.  Leaf Financial Corporation is a subsidiary of Resource America, INC (REXI).

According to their most recent 10-K form LEAF Equipment Leasing Fund III, the company leases new, used and recondition equipment to third parties. The equipment, mostly business-essentials, includes a diverse array of items such as computers, medical equipment, manufacturing and construction machinery, and office furniture.

In addition LEAF Equipment Leasing Fund III may obtain equipment portfolios of existing leases from other equipment leasers.

LEAF Equipment Leasing Fund III targets small to midsized business generally with less than 500 employees. Unfortunately for investors, the economic recession of 2009, negatively impacted this market and the performance of LEAF Equipment Leasing Fund III’s portfolio.

Investors in LEAF have not received the returns that brokers may have led them to believe. According to Leaf’s 10-K form, “to date, limited partners have received total distributions of approximately 28% of their original amount invested.”

Limited partners were paid distribution at a rate of approximately 2.0% for 2011 and 2012. The ability to pay investor distributions primarily comes from the collections on equipment leases and loans. LEAF currently blames their lack of liquidity on “higher than expected equipment lease defaults, which results in a loss of revenues.” For investors, this means that distributions are likely to continue to decrease or possibly cease.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of the Lease Equipment Leasing Fund III, please contact The White Law Group at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

Tags: , , , , , , , , , ,