Investigating Potential Claims Involving Mariner Palm Beach County Real Estate Opportunity Fund I
The White Law Group is investigating the liability that brokerage firms may have for improperly selling high risk private placements like Mariner Palm Beach County Real Estate Opportunity Fund I.
Mariner Asset Management Services is a privately owned real estate investment, development and management firm headquartered in West Palm Beach, Florida.
The company filed a Form D private placement offering, Mariner Palm Beach County Real Estate Opportunity Fund I, to raise capital in 2009. The total offering amount was $25,000,000. Private placements are typically sold by brokerage firms in exchange for a large up front commission. The fees can be very high — usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
Risks of Private Placements under Regulation D
Investments like Mariner Palm Beach County Real Estate Opportunity Fund I 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 or bonds. An additional risk inherent to these offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must 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.
Reg D private placements have high sales commission and due diligence fees. That means that brokers may have enormous incentive to push the product to unsuspecting investors who do not fully understand the risks. They may even misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. 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 in a FINRA arbitration claim.
If you are concerned about a private placement investment such as Mariner Palm Beach County Real Estate Opportunity Fund I, The White Law Group may be able to help you. Please contact The White Law Group at 1-888-637-5510 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 throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, please visit www.WhiteSecuritiesLaw.com.