Securities Investigation – World Global Financing (WG Financing)
Are you concerned about your investment in World Global Financing? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
World Global Financing Inc. a/k/a/ WG Financing is a provider of alternative business financing, such as commercial loans and merchant cash advances. According to reports, WG Financing has been embroiled a in a lawsuit with Eaglewood SPV I LP, a Delaware limited partnership. Eaglewood reportedly sued WG Financing on March 28th in the New York Supreme Court and secured an injunction on May 2nd to turn over the cash and proceeds from receivables owed to Eaglewood.
On May 8th, WG Financing filed Chapter 11.
According to SEC filings, World Global Financing filed a Form D to raise capital from investors in 2014 in Miami, FL. The total offering amount was $25,000,000.
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 World Global Financing is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
Investigating Potential Claims
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for unsuitably recommending high-risk private placements, like World Global Financing to 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 have concerns regarding your investment in World Global Financing 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 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, visithttp://www.whitesecuritieslaw.com.