July 29, 2014 Comments (0) Blog, Securities Fraud

Recovery of Sonoma Ridge Capital Investment Losses

Sonoma Ridge Capital
(Last Updated On: November 30, 2017)

 

Sonoma Ridge Capital Investment Losses

Have you suffered investment losses in Sonoma Ridge Capital, LLC? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to the Sonoma Ridge Capital website, the company is a private money lender that offers short-term commercial mortgage financing. In addition, Sonoma Ridge Capital sometimes partner with other capital providers on multi million dollar financing opportunities.

In a recent letter to Investors, Sonoma Ridge Capital announced that steps have been taken to liquidate portions of the portfolio. However, the letter states that, ‘unexpected economic and other circumstances have made the future development of [Sonoma Ridge Capital]’s other assets more difficult to predict.”

The letter goes on to discuss the status of the portfolio’s assets. Many of which may be disconcerting for investors. For example, a condominium project property sold in Parker, Arizona, that was subject to various property line disputes and government penalties, resulted in a net sales proceeds of $196,000. Due to “various complexities,” Sonoma Ridge Capital estimates their share of the proceeds to be approximately $30,000 after expenses.

In Michigan, 29 residential lots SPR acquired were marketed at a lower price in face of “current economic conditions.” The property was sold and Sonoma Ridge Capital recovered $34,317 in proceeds, which they expect to use to cover outstanding expenses.

Investor Beware

While some of the assets in Sonoma Ridge Capital’s portfolio may be more promising, many investors are wondering what their broker got them into. Formerly known as Jadda Secured Senior Mortgage Fund, the investment was sold to investors as a private placement and is exempt from registration with the Securities and Exchange Commission. Private placements are inherently risky and lack regulatory oversight, making them better suited for sophisticated and institutional investors.

Broker dealers that solicit private placements are required to perform adequate due diligence to ensure that investment recommendation are suitable for each individual investor. The investment should be in line with regulatory guidelines that include the client’s age, risk tolerance, net worth, and investment experience. If a broker fails to make suitable investment recommendations, they may be liable for investment losses.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Sonoma Ridge Capital, please contact The White Law Group at (888)637-5510 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 Vero Beach, Florida.

For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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