Concerned about investment losses in HighBrook Income Property Fund LP?
Have you suffered investment losses in HighBrook Income Property Fund LP? 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.
HighBrook Investors is a New York based real estate private equity firm that was founded in 2010. HighBrook Investors acquires and actively manages previously underperforming income-producing property investments, according to their website. The firm specializes in recapitalizing properties that are encumbered by complicated financial structures.
HighBrook Investors often raises money for investments through Reg D private placement offerings like the company did for HighBrook Income Property Fund LP. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The Trouble with Reg D Private Placements
The trouble with alternative investment products, like HighBrook Income Property Fund LP, is that they involve a high degree of risk and are typically sold as unregistered securities. This type of investment lacks the same regulatory oversight as more traditional investment products like stocks or bonds.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like HighBrook Income Property Fund LP or these other HighBrook Investors offerings:
HighBrook Income Property Fund II
HighBrook Income Property Fund REIT II B
HighBrook Income Property Fund REIT II
HighBrook Income Property Fund LP
HighBrook Income Property Sponsor Fund LP
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must 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.
Reg D private placements are also known for high sales commissions and due diligence fees. Brokers have an enormous incentive to push these products to unsuspecting investors who do not fully understand the risks. Sometimes brokers misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. 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 HighBrook Income Property Fund LP or another HighBrook Investors’ private placement investment, please contact The White Law Group at 1-888-637-5510 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. 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.