Recovery of Investment Losses in San Gold Corporation
Have you suffered losses investing in San Gold Corporation? If so, The White Law Group may be able to help you recover your losses through FINRA Arbitration.
San Gold Corporation explores for and produces gold in Canada. It owns and operates the Rice Lake Mining Complex, which includes the Rice Lake mine, the Hinge mine, and the 007 mine located northeast of Winnipeg, Manitoba. The company’s Rice Lake Mining Complex includes 300 claims totaling approximately 40,000 hectares. It also owns various mineral claims in Ontario. The company was formerly known as San Gold Resources Corporation and changed its name to San Gold Corporation. San Gold Corporation was founded in 1997 and is headquartered in Winnipeg, Canada, according to Bloomberg.
In June 2015, San Gold Corporation (TSX-V: SGR) closed the sale of all of its assets, subject to certain limited exceptions, to Manitoba Ltd. Accordingly, San Gold became bankrupt June 22, 2015, and was de-listed from the TSX Venture Exchange.
The Trouble with Reg D Private Placements
According to SEC filings, San Gold Corporation raised capital in 2010 and again in 2014, through Form D private placements.
The trouble with alternative investment products, like San Gold Corporation, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.
The White Law Group is investigating the liability that brokerage firms may have for selling private placements such as those offered by San Gold Corporation.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of San Gold Corporation or another private placement investment, please contact The White Law Group at 1-888-637-5510 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.