May 24, 2013 Comments (0) Blog, Securities Fraud

ATEL Capital Equipment Fund Investment Losses

ATEL Capital Equipment Fund Investment Losses, Featured by Top Securities Fraud Attorneys, The White Law Group

ATEL Capital Equipment Fund

Have you suffered losses in an ATEL Capital Equipment Fund?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.

According to their website,  ATEL Capital Group “provides everything from venture leasing for promising new firms, to large-scale equipment financing for some of the worlds most respected corporations.” The company leases a variety of equipment, including mining, transportation, construction, ocean-going vessels, aircrafts, and machine tools.
Currently,  ATEL “manages an equipment portfolio of approximately $2 billion.”ATEL has offered a number of Equipment Funds in order to raise capital. Investors who purchased Limited Liability Units in ATEL Capital Equipment Fund may have been unaware of the high risks. According to the prospectus of one of ATEL’s offerings, ATEL Capital Equipment Fund X, the investment involves significant risks, including:
– No market exists for the Units, and an investor may be unable to sell his Units; 

– The Fund expects to have more cash to distribute than taxable income, so, as in prior ATEL programs, a substantial portion of Fund distributions is expected to be a return of capital;

– The Fund’s performance is subject to risks relating to lessee defaults and the value of equipment at the end of the leases;

– The Fund has not specified all of its equipment investments; and

– The Fund will pay ATEL substantial fees;

Update on March 18, 2019

It also appears that certain of the ATEL offerings may have decreased substantially in value.  According to Central Trade & Transfer (a secondary market for private placement investments),  ATEL Capital Equipment Fund IX has sold as recently as March 2019 for $0.36 per unit, and in January 2019, ATEL 15, LLC sold for $3.76 per unit.

Broker dealers that sold ATEL Capital Equipment Funds have a fiduciary duty to disclose all the risks to investors. In addition, brokerage dealers have an obligation to make investment recommendations that are suitable for an individual given their age, net worth, investment experience and objectives, liquidity needs and risk tolerance.

However, because of the high sales commissions earned by broker-dealers, many may have pushed the sale of ATEL Capital Equipment Funds onto investors.

According to ATEL Capital Equipment Fund prospectus, 9% of investors initial capital is used to pay sales commission and an additional 3.5% is used to cover additional offering expenses.

Broker-dealers that have not done their fiduciary duty or performed adequate due diligence when selling investments may be held liable for damages through the FINRA arbitration.

Investigating Potential Lawsuits

The White Law Group is investigating potential FINRA arbitration claims involving the following ATEL Capital Equipment Funds:

  • ATEL Capital Equipment Fund VII
  • ATEL Capital Equipment Fund VIII
  • ATEL Capital Equipment Fund IX
  • ATEL Capital Equipment Fund X
  • ATEL Capital Equipment Fund XI

If you have suffered losses in an ATEL Capital Equipment Fund investment and would like to discuss your litigation options to recover your investment losses, please contact the attorneys of The White Law Group at 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 Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

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