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Written by 7:55 pm Blog, Current Investigations

Amfuel Holdings LLC – Securities Investigation

AmFuel Holdings LLC

Investigating Potential Claims involves AmFuel Holdings LLC

Did you lose money investing in Amfuel Holdings LLC? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA arbitration.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

American Fuel Cell & Coated Fabrics Co. is a supplier of fuel cells and flexible liquid storage equipment for defense and commercial industries. The company’s home office is located in Wichita Falls, Texas.

According to reports, the company has been a U.S. government contractor for over 70 years and provides its products to the commercial market as well. Amfuel is one of only five domestic-based companies that manufactures fuel cells in significant quantities for the U.S. Department of Defense (DOD).

Private Placement Investments – Are they suitable for you?

Amfuel filed a Form D to raise capital in 2015. Reg D private placement investments such as this are typically sold by brokerage firms in exchange for a large up front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

The problem with private placement investments such as AmFuel Holdings LLC is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.  These investments may seem wise at first, until the dramatic drop in distributions.

Investigating Potential Claims

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like AmFuel Holdings LLC to their clients.

Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Free Consultation

If you have concerns regarding your investment in AmFuel Holdings LLC and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

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 Franklin, Tennessee.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.

 

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