May 5, 2016 Comments (0) Blog, Securities Fraud

Investor Alert: LEAF Equipment Leasing Income Fund III Terminated

(Last Updated On: May 5, 2016)

Have you suffered losses due to your investment in the LEAF Equipment Leasing Income Fund III? If so, the attorneys of The White Law Group may be able to help you recover your investment losses through FINRA arbitration.

According to LEAF’s most recent Current Report (form 8-K) the fund listed the following events:

  • On July 31, 2015 as expected the Registrant wound up its business and transferred its remaining assets to settle outstanding debt obligations. According to its partnership agreement, this results in the dissolution of the Registrant.
  • On August 6, 2015 the general partner filed a certificate of cancellation for the Registrant with the Secretary of State of the State of Delaware and on August 12, 2015 filed a Form 15 with the Securities and Exchange Commission.
  • Final Form 1065 K-1’s are expected to be sent to the limited partners in early 2016.

Although, Leaf was terminated in the summer of 2015, it seems that many investors are just now becoming aware of the funds end, and left to wonder what happened to their money.

The White Law Group is investigating the liability some brokerage firms may have for recommending LEAF to clients.

Unfortunately, some broker may have downplayed the risks associated with limited partnerships like LEAF. In general, limited partnerships are complex high risk products that are typically intended for sophisticated and institutional investors.

One of the first risk factors listed on LEAF’s prospectus, states “We May Not Return All of Your Investment or Any Rate of Return on Your Investment.”

In addition to the risks, another problem with limited partnerships is the high sales commissions offered to brokers. Compared to your typical stock or mutual fund that offer 1%-2% commission, the commission associated with LEAF was 10.5%.

The high sales commission brokers earned for selling Leaf may have provided some brokers with enough incentive to push this product to unsuspecting investors. Compared to your typical stock or mutual fund that offer 1%-2% commission, the commission associated with LEAF was 10.5%.

Brokerage firms 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 invested in LEAF Equipment Leasing Income Fund III or another LEAF Fund and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 1-888-637-5510 for a free consultation.

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 Vero Beach Florida.

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