Investment Losses in Walton International Group
Are you concerned about your Walton International Group investment? If so, The White Law Group may be able to help you with a FINRA arbitration claim against the brokerage firm that sold you the investment.
Walton International is a multinational, privately-owned real estate investment and development group concentrating on the research, acquisition, administration, planning and development of strategically located land in major North America growth corridors, according to its website.
Letter to Investors
The company recently sent a letter to investors apologizing for not delivering 2016 audited financials on time. According to the letter, Walton has changed their valuation policy, which will impact values on Investor statements.
According to the letter, Walton has historically used a “cost” approach to reporting values for investments in Walton’s Issuers, however, “in working with our auditors to complete the 2016 financials, we were required to obtain fair market values for the assets held in each of Walton’s Issuers, which was a new requirement from the auditors as compared to prior years.”
These new valuations are apparently based upon a fair market value analysis of each Issuer as follows:
1.Fair market value of the Issuer’s land,
2. Plus the value of any other assets including cash on hand;
3. Net of any applicable liabilities.
*To determine estimated per-unit values, the net asset value is divided by the applicable number of Units issued.
Further, the letter states that “In most cases this will result in a decrease in reported value as compared to the carrying cost approach.”
Walton International Group often raises capital through Reg D private placements. Reg D Private placements are high risk investments. They lack the same regulatory oversight as more traditional investment products like stocks or bonds or mutual funds.
The White Law Group continues to investigate the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like Walton International Group offering, to their clients.
Specifically, The White Law Group is investigating the following Walton offerings, among others:
Walton U.S. Land Fund IV
Walton U.S. Land Fund III
Walton Land Opportunity Fund LP
Walton Canter Creek LLC
Walton U.S. Land Fund II
Walton Camino Fund Real I
Are Regulation D Private Placement Investments Suitable for You?
Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments. They are only suitable for high net worth, sophisticated investors.
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.
If you concerned about your Walton International Group investment offering and would like to speak with a securities attorney about your options, please call 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 White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.