Many investors have experienced significant losses as a result of purchasing Maluhia Eight. As such, The White Law Group is investigating claims against the broker-dealers that sold Maluhia Eight and their liability for investment losses
According to Form Reg-D filed with the Securities and Exchange Commission, Maluhia Eight set out to raise $2,435,000 in 12% collateralized profit participation securities. The risks associated with unregistered securities, like Maluhia Eight, are high and often speculative making this type of investment unsuitable for many investors.
Broker-dealers have a responsibility to recommend securities products that are consistent with each individual client’s age, net-worth, investment objectives, financial needs, and risk tolerance. Unfortunately, it appears that some broker-dealers overlooked suitability requirements and industry regulations.
The high commission’s that broker-dealers earned by selling Maluhia may have provided the incentive to ignore industry rules. According to Form Reg-D filed in July 2008, Maluhia offered a 10% commission to brokers that sold the investment. After barely 2 years Maluhia 8 filed for bankruptcy. In addition, Maluhia Nine appears to have filed for bankruptcy as well.
When broker-dealers overlook suitability requirements and industry regulations they may be liable for investment losses. If you invested in Maluhia Eight and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.