November 8, 2017 Comments (0) Blog, Current Investigations

Atel 16 LLC Securities Investigation – Illiquid Investment

Atel 16 LLC
(Last Updated On: November 8, 2017)

Secondary Market Listing – ATEL 16 LLC – $6.75/share

Did you lose money investing in ATEL 16 LLC at the advice of your financial advisor? 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.

According to the prospectus, ATEL 16 LLC was an investment offering to raise capital to purchase a portfolio of leased equipment, equipment financing transactions and other investments leased to major corporations. ATEL intended to use 87% of the capital it raised from the sale of “units” to purchase its portfolio.

The purchase of ‘units” in a Limited Liability Company (LLC) are considerably more risky than traditional investments such as stocks, bonds, or mutual funds. Unfortunately brokers may not have adequately explained the risks and liquidity problems to investors.

The risk factors listed on ATEL 16 LLC’s prospectus include no guarantee of distributions or return of your capital investment. The investment is also illiquid. “No market exists for the Units or is expected to develop, the Fund’s Operating Agreement includes significant restrictions on the transferability of Units, and an investor may be unable to sell his Units or able to sell the Units only at a significant discount.”

Currently shares of ATEL 16 LLC are listed on Central Trade and Transfer, a secondary market for private placements, for just $6.75/share. This is bad news for investors since the original offering price was $10.00/share.

ATEL 16 LLC – High Commissions for Brokers

Did you know that brokers can earn a 9% sales commission on ATEL 16 LLC?

This may provide some brokers with enough incentive to push the product to unsuspecting investors. Additionally, some brokers may have downplayed the risks associated with the purchase of LLC units and misled investors into thinking that they were “safe” investments.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

Have you suffered investment losses in ATEL 16 LLC?  If so, securities attorney at The White Law Group may be able to help you to recover your investment losses. Please call The White Law Group at 1-888-637-5510 for a free consultation.

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 Vero Beach, Florida.

To learn more about the firm, please visit www.WhiteSecuritiesLaw.com.