Concerned about investment losses in Cypress Equipment Fund IX LLC?
Have you suffered investment losses in Cypress Equipment Fund IX LLC? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Cypress Financial Corporation is a privately held manager of investment programs, according to their website. The company invests in partnerships, leases, and portfolio acquisitions of equipment in transportation, energy, and industrial sectors.
The company has offered a number of private placements in order to raise capital. These high risk private placements were then offered to the public by various registered broker-dealers who had established selling agreements with Cypress Capital Corporation.
The trouble with private placements, such as Cypress Equipment Fund IX LLC, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and are better suited for sophisticated and institutional investors. In addition, private placements are exempt from registration with the Securities and Exchange Commission (SEC), therefore they lack the same regulatory oversight as more traditional investments.
Cypress Equipment Fund IX LLC invests in equipment lease transactions including rail, air, maritime, highway and intermodal, energy, industrial and other equipment leases.
According to a letter to investors dated January 2015:
The assets of Cypress Income Fund, of which the Fund held 96% of the equity, were sold. They did not generate sufficient cash flow to fully repay the Cypress Income Fund debt; therefore, the Fund realized no return on its investment in Cypress Income Fund.
The trouble with private placements, like Cypress Equipment Fund IX LLC, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and are better suited for sophisticated and institutional investors. In addition, private placements are exempt from registration with the Securities and Exchange Commission (SEC), therefore they lack the same regulatory oversight as more traditional investments.
Investors trying to figure out what is going on with their Cypress Equipment Fund IX LLC investment may have difficulty finding the information they are seeking. Private placement offerings are not regulated in the same way as other investments and information regarding the investment is not disclosed in the same manner.
Broker dealers 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 the investor’s age, risk tolerance, net worth, and investment experience.
Furthermore, broker dealer often earn extremely high sales commission selling private placements, sometimes as high as 15%. Unfortunately, the high sales commissions associated with private placements often provides some broker dealers with enough incentive to overlook suitability requirements.
Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale.
Recovery of Investment Losses
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 a FINRA arbitration.
To determine whether you may be able to recover investment losses incurred as a result of your purchase Cypress Equipment Fund IX LLC, please contact 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 firm, visit www.WhiteSecuritiesLaw.com.