February 18, 2016 Comments (0) Blog

Investor Alert: Aequitas Secured Subordinated Promissory Notes

(Last Updated On: February 18, 2016)

Have you suffered investment losses in the Aequitas Secured Subordinated Promissory Notes or another Aequitas private placement offering?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration against the brokerage firm that recommended the investment.

According to the SEC database, Aequitas Commercial Finance is a limited liability company based in Oregon.  The Aequitas Secured Subordinated Promissory Notes were established as a Reg D private placement offering in or about 2008/2009.

Generally speaking, private placement investments are high risk investments because they lack the same liquidity and regulatory oversight as more traditional investments – like bonds and mutual funds.

It appears that Aequitas provided a recent investor update that indicated that the company was having liquidity challenges and had engaged a leading provider of restructuring services.  They also announced that they were ceasing any redemptions and interest payments on the notes and reducing staff to preserve cash.  All in all, it sounds like the outlook for Aequitas Private Note holders is bleak.

It is unclear how this may impact other Aequitas Commercial Finance offerings, including the company’s Income Opportunity Funds (Aequitas Income Opportunity Fund I and Aequitas Income Opportunity Fund II) or the Aequitas Income Protection Fund.

The White Law Group is investigating the liability that brokerage firms may have for improperly recommending Aequitas products like the Aequitas Secured Subordinated Promissory Notes.

Brokerage firms that sell private placements, like Aequitas Secured Subordinated Promissory Notes, are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in the Aequitas Secured Subordinated Promissory Notes or another Aequitas Commercial Finance offering and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors, visit www.WhiteSecuritiesLaw.com.