Investigating Potential Claims – Sonoma Ridge Partners aka Jadda Secured Senior Mortgage Fund
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitable recommended Sonoma Ridge Partners (aka Jadda Secured Senior Mortgage Fund) to investors.
Sonoma Ridge Capital is a private money lender that offers short-term commercial mortgage financing, according to their website. In addition, Sonoma Ridge Capital sometimes partners with other capital providers on multi-million dollar financing opportunities.
In a recent letter to Investors, Sonoma Ridge Capital announced they are finalizing activities of Sonoma Ridge Partners LLC. The letter reviews the disappointing turn of events leading to liquidation, blaming the Great Recession and “current economic conditions” for the disappointing losses in the fund’s investments.
The letter goes on to discuss the liquidation of the portfolio’s assets. In the case of the North Harbor project, Sonoma Ridge Partners used previously borrowed funds to prepare the properties for sale, but the sales didn’t happen. According to the letter, “Under current market conditions, these efforts did not prove to be successful.”
Consequently, the first lender foreclosed on the property, which led to the junior lender writing off $3 million, hence there were no proceeds.
The letter goes on to say that Sonoma Ridge Partners “only became a real estate owner in an effort to protect the fund’s investments.” In closing the letter states that the liquidation process is almost complete and the company does not expect to pay any more distributions to investors.
Risks of Private Placement Investments
Formerly known as Jadda Secured Senior Mortgage Fund, Sonoma Ridge Partners was sold to investors as a private placement and is exempt from registration with the Securities and Exchange Commission. Private placements are inherently risky and lack regulatory oversight. They are better suited for sophisticated and institutional investors.
Broker dealers that solicit private placements are required to perform adequate due diligence to ensure that investment recommendation are suitable for each individual investor. The investment should be in line with regulatory guidelines that include the client’s age, risk tolerance, net worth, and investment experience. If a broker fails to make suitable investment recommendations, they may be liable for investment losses through FINRA arbitration.
Recovery of Investment Losses
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Sonoma Ridge Partners, 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.