Concerned about investment losses with CION Investment Corporation BDC?
Have you suffered losses investing in CION Investment Corporation BDC? If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm or financial advisor that recommended the investment to you.
CĪON Investment Corporation BDC is a non-traded business development company, or BDC, that primarily invests in the senior secured debt of U.S. middle market companies, which we define as companies with annual EBITDA of $50 million or less. CĪON’s investment objective is to generate current income and, to a lesser extent, capital appreciation for its investors.
On February 2, 2017, CION Investment Corporation (CION) announced that Harry Giovani, managing director and chief credit officer of CION, had resigned from his positions at CION effective March 3, 2017.
What is a BDC?
A Business Development Company (“BDC”) is a type of investment company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, in some cases, the sale of their shares.
BDCs are relatively new investment products, that were created in 1980 after Congress approved a series of amendments to the Investment Act of 1940. The creation of BDCs was meant to spur investment in smaller companies that couldn’t attract traditional forms of capital. BDCs have become increasingly popular in recent years, in part due to their ability to create strong returns on investment. However, BDCs are not without their risks and pitfalls.
Risks of BDCs
Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity.
The White Law Group has represented a number of investors over the last few years in non-traded REITs and as well as BDCs– in large part because of their high commission structure and the possibility that nefarious financial advisors will push these products unsuitably to maximize their own commissions. As such, the firm is investigating the liability that brokerage firms may have for recommending high-risk BDCs, like CION Investment Management BDC.
Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.
If you suffered losses investing in CION Investment Company BDC and would like to discuss your litigation options, please call the securities 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. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.