November 2, 2016 Comments (0) Current Investigations

Business Development Corporation of America (BDCA) Investment Losses

BDCA
(Last Updated On: May 25, 2017)

Investigation of BDCA

Have you suffered investment losses in Business Development Corporation of America (a/k/a BDCA)? If so, the securities attorneys of 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.

BDCA is a non-traded business development company that invests in both the debt and equity of private middle market companies.

Business Development Corporation of America, a non-traded business development company, announced on November 1 that the company has appointed an affiliate of Benefit Street Partners L.L.C. as its new external advisor, effective immediately.

The company’s Board of Directors, including all of its non-interested directors, have unanimously approved BSP as the new advisor. The transaction was also approved by BDCA stockholders at the Company’s Special Meeting of Stockholders on October 28, 2016.

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling high-risk private placements like BDCA and BDCA II.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

However, the problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of BDCA or BDCA II, please contact The White Law Group at 1-888-637-5510 for a free consultation.

For more information on The White Law Group’s investigation see First Warning Sign for investors?

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. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.