Concerned about your investment in KiOR Inc.?
The White Law Group is investigating potential claims involving broker dealers who may have improperly recommended Kior Inc. to investors.
KiOr Inc. opened the first U.S. commercial-scale cellulosic biofuel plant in 2012 in Columbus, Mississippi, converting wood waste and other non-food crops into gasoline and diesel, according to Bloomberg.
The company has reportedly been embroiled in scandal since 2014 when it filed for bankruptcy protection with plans to sell its assets. The Mississippi Development Authority purportedly contested it and attempted to convert the Chapter 11 proceeding into a Chapter 7 proceeding.
The KiOR Columbus facility assets were then allegedly sold at auction for pennies on the dollar, and the KiOR technology and its pilot plant and offices in Pasadena, Texas were re-organized as Anaeris Technologies, and the company continues to pursue its technology.
As Mississippi stated in its lawsuit:
KiOR and certain of its officers and directors were named defendants in a securities fraud class action and a shareholders’ derivative lawsuit that were consolidated in federal court in Houston, Texas. Mark Ross has filed a whistleblower action against KiOR in which he alleges that he was wrongfully terminated for continually bringing the disparities between the company’s financial modeling and actual performance to light.
Finally, the Attorney General of the State of Mississippi sued the individuals and entities he held responsible for “the commission and cover-up of one of the largest frauds ever perpetrated on the State of Mississippi.”
KiOR Inc. – A Suitable investment for you?
KiOR Inc. filed a Form D in 2010 in Pasadena, Texas to raise capital from investors. Kior Inc. is a Regulation D Private Placement investment. Investments such as these 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 Kior Inc. is that they often 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.
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 a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment 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.
Do you have concerns regarding your investment in Kior Inc.? If so, The White Law Group may be able to help you. 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.