February 14, 2017 Comments (0) Current Investigations

Florida Capital Real Estate Partners 28, Ltd. Investment Losses

Cypress Equipment Fund
(Last Updated On: February 15, 2017)

Investment Losses in Florida Capital Real Estate Partners 28 Ltd.

Have you suffered losses in Florida Capital Real Estate Partners 28 Ltd. or another Florida Capital Real Estate Partners investment? If so, The White Law Group may be able to help you recover your investment losses through FINRA arbitration.

Florida Capital Partners (FCP) is a private investment firm that invests in private, middle-market companies nationwide, according to their website. Florida Capital Partners often raise money through Reg D private placement offerings like it did for Florida Capital Real Estate Partners 28 Ltd.

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 Risks of Reg D Private Placements

The trouble with Reg D private placements, like Florida Capital Real Estate Partners 28 Ltd., is that they involve a high degree of risk and are typically sold as unregistered securities which lack 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 Florida Capital Real Estate Partners 28 Ltd.

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.

However, another problem with Reg D private placements is the high sales commissions and due diligence fees the brokers earn.  Brokers have an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. They can easily 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.

Recovery Options

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Florida Capital Real Estate Partners 28 Ltd. or another Florida Capital Partners offering, 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.