November 13, 2016 Comments (0) Blog, Current Investigations

Rancon Realty Fund IV and Rancon Realty Fund V Investment Losses

(Last Updated On: June 27, 2017)

Are you concerned about your investment losses in Rancon Realty Fund IV or Rancon Realty Fund V? 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.

Founded in 1971, the Rancon Group has formed hundreds of public and private partnerships as limited liability companies (LLCs), joint ventures and limited partnerships (LPs) that have raised more than $800,000,000 in investor capital, according to their website. In the past decade, the Rancon Group claims to have acquired, developed and sold more than one thousand acres of residential, commercial and industrial properties averaging a substantial rate of return for their investors

.The trouble with private placements, such as Rancon Realty Fund offerings, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and are better suited for sophisticated and institutional investors. In addition, private placements are exempt from registration with the Securities and Exchange Commission (SEC), therefore they lack the same regulatory oversight as more traditional investments.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience.

Furthermore, broker dealer often earn extremely high sales commission selling private placements, sometimes as high as 15%. Unfortunately, the high sales commissions associated with private placements often provides some broker dealers with enough incentive to overlook suitability requirements.

According to a letter to investors of Rancon Realty Fund V, in December 2015, Rancon V completed the sale of all of its properties pursuant to the Plan of Liquidation previously approved by the Limited Partners.

As authorized by the Plan of Liquidation, Rancon V transferred all of its remaining assets to the Rancon Realty Fund V Liquidating Trust in August and Rancon V was dissolved. Investors who were Limited Partners of Rancon V become Beneficiaries who hold beneficial interests in the Trust.

The purpose of the Liquidating Trust was to provide for the orderly liquidation of the assets transferred to it by Rancon V, to pay the liabilities of Rancon V and the expenses of administering the Trust, and to make liquidating distributions to the Beneficiaries in accordance with their Beneficial Interests.

For more information on The White Law Group’s investigation see, Recover Losses in Rancon Realty Fund V.

If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through a FINRA arbitration.

To determine whether you may be able to recover investment losses incurred as a result of your purchase Rancon Realty Fund IV or Rancon Realty Fund V, 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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