Have you suffered investment losses as a result of your purchase of IMH Financial Corporation (formerly known as the IMH Secured Loan Fund)? If so, The White Law Group may be able to help you recover your losses through a FINRA dispute resolution claim against the broker-dealer that sold you the investment.
Since 2003, IMH Financial Corporation has been a real estate lender and investor in commercial mortgage loans. In 2010, IMH Financial converted from a limited liability company (IMH Secured Loan Fund, LLC) into a corporation to better position the company for an initial public offering (IPO). Unfortunately for investors, the company has yet to achieve an IPO.
According to a Form 8-K filed with the Securities and Exchange Commission, IMH Financial is awaiting final approval of a settlement agreement in a class action lawsuit involving the company’s conversion transaction. It is unclear when unitholders involved in the class action will be compensated.
Investments in real estate debt are complex, high-risk products that often lack liquidity and areintended for sophisticated and institutional investors. Unfortunately for many investors, broker-dealers that sold IMH Financial often overlooked suitability requirements and sold the investment to unsophisticated, low net worth investors.
Brokerage firms have a fiduciary duty to perform due diligence on any investment it offers and to make sure investment recommendations are in line with a client’s age, risk tolerance, net worth, investment objective and financial needs. Given what is known about IMH Financial, it appears that some broker-dealers that sold the investment failed to perform the adequate due diligence and could be held liable for investment losses.
