Investigating Potential Claims Involving Arciterra Note Fund III
Did you lose money investing in Arciterra Note Fund III? 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.
ArciTerra Group, LLC acquires, holds, develops, manages, leases, and sells real estate properties in North America. Its portfolio includes neighborhood and community centers, power/lifestyle centers, and single warehouse and distribution centers; and single/multi-tenant retail, office, and industrial properties, according to Bloomberg. The company was incorporated in 2005 and is based in Phoenix, Arizona.
Arciterra often raises money for investments through Reg D private placement offerings like the company did for Arciterra Note Fund III. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The Problem with Reg D Private Placements
The White Law Group is investigating the liability that brokerage firms may have for improperly selling high-risk private placements like Arciterra Note Fund III.
The trouble with Reg D private placements, like Arciterra Note Fund III, is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks, bonds or mutual funds. These investments are also illiquid, and it can often be difficult to find a buyer. According to Central Trade & Transfer, a secondary market for private placements, shares of Arciterra Note Fund III are currently listed for just $0.45/share. The original purchase price was $1.00/share.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products. Sometimes this can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and 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 found liable for investment losses in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Arciterra Note Fund III or another Arciterra 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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.